Charity Bank

Charity Bank is a UK bank that takes savers' deposits and lends them to charities, social enterprises and community organisations. It is a small, specialist bank rather than a high street name, and it is known for two things: an ethical lending purpose, and accounts that are run largely by post and email rather than through an app.

Its savings range covers notice accounts, an easy access account, a cash ISA, fixed rate accounts for charities and trusts, and Community Investment Tax Relief accounts for individuals and credit unions. Minimum and maximum deposits, notice periods and interest rates vary by account, and the bank's own site carries today's figures.

The bank says it does not currently offer online services once an account is open, and that a mobile banking app for savers will launch later in 2026¹. It is a member of the Financial Services Compensation Scheme, so eligible deposits are protected up to £120,000 per person².

What Charity Bank offers savers

Charity Bank's savings range is built around notice accounts, with a smaller number of other products. The Ethical 33-Day Notice Account is for individuals permanently resident in the UK, and the bank says higher interest rates apply to higher balances¹. The Ethical 100-Day Notice Credit Union Account is aimed at credit unions and carries a 100 day notice period⁴.

Alongside those sit an Ethical Easy Access Account, an Ethical ISA, and Community Investment Tax Relief accounts, one for personal savers and one for credit unions⁵. The bank also offers a one year fixed rate account for charities, trusts and unincorporated associations⁹.

Two features run across the range. Interest is calculated daily and added to the account at set points in the year, and interest is paid gross, meaning without tax deducted⁴. There is no bonus interest payable on the fixed rate account, so the rate you are quoted is the rate you get rather than a headline figure that drops away after a period⁹.

If you are comparing this with the wider market, our guides to savings accounts and ISAs set out how the different account types work and what to check before opening one.

Notice accounts: how withdrawals and notice periods work

A notice account pays a higher rate in exchange for you agreeing to give the bank advance warning before you take money out. On Charity Bank's notice accounts you send a signed withdrawal form, and the money is released at the end of the notice period⁴.

The notice period is the whole mechanism. On the Ethical 33-Day Notice Account it is 33 days¹. On the Ethical 100-Day Notice Credit Union Account it is 100 days⁴. Money you have asked for is not available before that period ends, so a notice account suits money you do not expect to need at short notice.

Other providers in this market work the same way with different periods, which shows how much the terms vary.

Charity Bank's own notice accounts are described in terms of the notice period alone, so the practical rule is to plan withdrawals around it.

Accounts for charities, businesses and credit unions

Charity Bank's charity side is where its lending purpose and its savings products meet. The Ethical 1-Year Charity, Trust and Unincorporated Association Fixed Rate Account is open to charities, trusts and unincorporated associations, and interest is calculated daily and added on each anniversary of the investment and at maturity⁹.

The bank also runs a Community Investment Tax Relief account for credit unions, alongside the personal version of the same product⁸. Community Investment Tax Relief is a tax relief scheme rather than an ordinary savings account, so the rules around it are different from a standard deposit.

Charities looking at the wider market will find a small number of dedicated accounts. One building society's charity account is open to clubs, associations and registered charities but is suitable only for charities that operate a separate bank account¹⁴. Another requires an application form with documentation and mandates, returned by post or handed in at a branch¹². A third can be opened by post or at a branch or agency with the opening deposit and identity documents¹¹.

One structural point matters for charities. Basic bank accounts are not available to businesses, though charities may find the industry body UK Finance's guide on opening a charity bank account helpful¹⁵. If an organisation has difficulty setting up a business bank account, free business debt advice services offer guidance on what to do next¹⁶.

How interest is calculated and paid

Charity Bank calculates interest daily and adds it to the account quarterly, following month end in March, June, September and December, and on closure of the account⁴. On the one year fixed rate account for charities and trusts, interest is calculated daily and added on each anniversary of the investment and at maturity, with no bonus interest payable⁹.

Interest is paid gross, meaning without tax deducted, on the personal easy access account and on the charity fixed rate account⁵. That is the norm across UK banks and building societies: most interest is paid without any tax taken off¹⁷. Paying interest gross does not make it tax free. If tax has already been taken out you report both the net amount and the tax deducted, and interest you receive is reported through self assessment where you complete a return¹⁷.

The rate itself is not fixed for the life of a variable account. Charity Bank states that the interest rate is managed and may be altered in accordance with the changes to interest rates section of its terms for organisations⁴. On a fixed rate account the rate applies for the fixed term.

Who can open a Charity Bank account

Eligibility depends on the account. The Ethical 33-Day Notice Account is open to individuals who are permanently resident in the UK⁶. The charity fixed rate account is open to charities, trusts and unincorporated associations⁹. The credit union accounts are for credit unions⁴.

For personal savers, the usual identity checks apply. Opening a bank account normally means completing an application form and providing proof of identity, including full name, date of birth and address¹⁸. Applications can usually be made online, in a branch, or sometimes by phone¹⁹.

If you have had trouble opening an account elsewhere, there are routes in:

• Basic bank accounts are designed for people who may not qualify for a standard current account, and can be opened jointly with someone you trust if you both qualify²⁰.
• Some banks run special schemes for people with no fixed address, working with a local homeless charity to confirm identity²⁰.
• If you cannot open a bank account at all, benefits can still be paid through the Payment Exception Service²¹.

How to apply and fund a new account

Charity Bank accounts can be applied for online or by post, using a downloadable application pack⁴. Once an account is open, it is operated by post, with questions answered by email or over the phone⁵.

Funding deadlines are strict and differ by account. On one charity account you have 14 days after submitting your application to fund the account, and the money must come from your nominated account either electronically or by cheque; if it is not funded within the 14 days the account is closed¹³. On another, deposits must be received within five business days of approval¹⁰.

The same pattern appears across the market. One charity account allows only one account per customer, in single or joint names¹⁰. Another is open to those aged 18 and over and can be opened in a branch or online but not by post¹⁰.

Banking by post, email and the coming mobile app

Charity Bank is upfront that its servicing is not app-first. The bank states that all accounts are operated by post, that questions can be answered directly by email or over the phone, and that it currently does not offer online services once an account is open⁵. On another of its product pages it says you can manage your account by post and email, or through the mobile banking app if you are registered⁴.

That app is coming rather than here. Charity Bank says its upcoming mobile banking app will launch to savers later in 2026, and that its terms and conditions include references to support it⁴. Until then, the practical rhythm of the account is paperwork: application packs, signed withdrawal forms, and correspondence by post.

For readers used to app banking, it is worth knowing what a banking app normally does. Most banks offer smartphone and tablet apps that let you check your balance and send payments, downloaded from the Google Play Store or the App Store²². Online banking with most banks lets you check your balance at any time, view statements, move money between your accounts, pay people you know, and set up or cancel direct debits and standing orders²². Charity Bank's app, when it arrives, will be the point at which those functions become available to its savers.

There are also protections to switch on once you are banking digitally. Banks typically let you opt in to alerts for card spending and bank transfers, which you can find in the app settings²³.

Where your savings go: Charity Bank's lending to charities

Charity Bank's model is to take deposits from savers and lend to organisations with a social purpose. That is the reason many of its savers choose it, and it is also the reason its product range looks different from a high street bank's: the accounts are built to attract stable deposits that can be lent out over longer periods, which is why notice periods and fixed terms feature so heavily.

The charity sector it lends into is broad. Charitable organisations offer money, a product or a service, depending on their purpose and resources²⁴. Grant giving funds pay out by cheque or through a direct bank transfer using a system like BACS, some pay an adviser organisation, and some give grants as gifts in kind²⁵. Each charity runs its own application process, which may involve a form or a personal letter²⁶.

For a saver, the practical point is that the ethical purpose does not change the mechanics of the account. Your money is still a deposit with a bank, subject to the same protection limits as any other, and the notice periods and funding deadlines still apply.

Complaints and the Financial Ombudsman Service

Charity Bank says customers may wish to complain when things go wrong, and that complaints are dealt with fairly, consistently and efficiently and resolved at the earliest opportunity²⁷. Complaints that cannot be settled may be referred to the Financial Ombudsman Service²⁷. If you need the complaints procedure in an alternative format, the bank asks you to email your request to the address given on its complaints page²⁷.

The ombudsman is the free, independent route for unresolved complaints about financial firms. It also handles complaints about claims management companies, for example about the results of a claim or the fees charged²⁸. Its reach is substantial: in the year from 9 July 2019 to 8 July 2020 it recorded 91,430 banking complaints from within the UK²⁹.

If a complaint is about a payment that went to the wrong account, there is a separate process. Confirmation of Payee exists to catch mismatches before a payment is sent, and there are steps to take if money has already gone astray³⁰.

How your money is protected by the FSCS

Charity Bank is a member of the Financial Services Compensation Scheme⁷. The FSCS protects eligible deposits up to £120,000 per person or company, per authorised firm³². For banks, building societies and credit unions authorised by the PRA and FCA, that limit is £120,000 per eligible depositor³³.

Joint accounts get more room. Each account holder is protected up to £120,000, making £240,000 in total on a joint account³. The FSCS assumes the money in a joint account is split equally between the holders unless evidence shows otherwise³⁴.

The limit works per person, per authorised firm, and it counts across the accounts you hold with that firm rather than applying to each account separately. Spreading savings across accounts with different banks is how the limit is used more than once.

Charities are covered too. The FSCS protects eligible charity deposits up to £120,000 per bank, and how a charity is set up determines whether it is treated as a company or a trust for protection purposes³⁵. If a bank fails, customers of regulated UK banks and building societies get their money back automatically³⁶.

Money held across several accounts with the same licence counts together towards one limit, so spreading savings across accounts with the same bank does not increase your protection³⁷.

You can check whether a firm is covered using the FSCS protection checker³⁸. Charity Bank's own details are on the FCA Register under firm reference number 207701, with permission to accept deposits³⁹. It also appears on the Bank of England's list of UK incorporated banks authorised to accept deposits⁴⁰, and its company record shows it incorporated on 28 November 2001 and currently active⁴¹.