Reliance Bank

Reliance Bank is a small UK bank that describes itself as a social impact bank: its shareholder is The Salvation Army International, and it says it aligns its lending practices to the United Nations' Sustainable Development Goals¹. It was formed in 1890 as the bank for The Salvation Army and has supported charities and businesses since then¹. For personal customers it offers savings accounts, including instant access, notice and fixed term accounts, plus a personal current account with an overdraft facility². It no longer accepts new residential mortgage applications, though it still lends commercially³.

Reliance Bank has been a bank since 1890, when it was formed as the bank for The Salvation Army, and it describes itself as a social impact bank⁴. It appears on the Bank of England's list of UK banks that accept deposits⁵. Money you hold with it is protected by the Financial Services Compensation Scheme up to £120,000 per eligible person, per bank¹.

Reliance Bank is an online and telephone bank rather than a branch network. You open and manage savings accounts through its website and digital banking portal, and its current account comes with a Visa debit card². It also promotes its savings products on a deposit raising platform called the Flagstone Savings Platform².

What Reliance Bank offers

Reliance Bank's personal banking range is built around savings. It offers an Instant Access Savings Account, a 90 Day Notice Savings Account, a Charity Giving Instant Access Savings Account for people saving to support charitable causes, and personal fixed term deposit accounts². The fixed term accounts come in a range of terms, and all personal savings accounts are available as individual or joint accounts⁷. The bank also promotes its savings products on the Flagstone Savings Platform, a third party deposit platform, so you may come across its accounts there as well as on its own website².

Alongside savings, Reliance Bank offers a Personal Current Account with a Visa debit card, Faster Payments, Direct Debits and an overdraft facility for existing customers⁶. The card can be used at any merchant that accepts Visa, including overseas⁶.

The bank presents itself as a social impact bank. As well as aligning its lending to the UN's Sustainable Development Goals, it publishes figures on what its lending has supported: in its most recent reported year it says it helped reduce hunger for 6,140 people, supported 6,400 people with community centres and facilities, and provided personal learning and development opportunities for 443 people¹. In the 2024 Charity Finance Banking Survey it achieved first place for Relationship Management¹. These are the bank's own claims about its own impact and its own survey results.

For mortgages, Reliance Bank has permanently stopped accepting new residential mortgage applications, though it still accepts commercial mortgages³. Existing mortgage customers continue to be served.

If you are weighing up savings options generally, our guide to savings accounts explains the types and how they differ, and our guide to current accounts does the same for everyday banking.

Instant access savings: how interest and withdrawals work

The Instant Access Savings Account is Reliance Bank's most flexible savings account. You can withdraw or add funds at any time, with no fees, penalties or notice period, and there is no limit on the number of withdrawals⁹. You can apply as a single applicant or open a joint account⁹.

Interest is calculated daily and paid into the account on the last calendar day of each quarter⁹. That quarterly rhythm matters if you are comparing this account with accounts that pay interest monthly or annually: the interest lands in your account four times a year rather than every month. The same quarterly pattern applies to the bank's notice accounts and its Charity Giving account, where interest is likewise calculated daily and applied at the end of each quarter².

The interest rate on the instant access account is variable, which means the bank can change it. If it decreases the rate, it will write to you and give at least 14 calendar days' notice before the decrease takes effect; if it increases the rate, the increase is applied immediately and published on the bank's website the same day⁹. This notice rule gives you a window to move your money if a cut is announced, which is worth knowing if you keep a large balance in the account.

Because withdrawals are unrestricted, an instant access account of this kind tends to suit money you may need at short notice: an emergency fund, or savings for a bill you know is coming. The trade off, as with any instant access account, is that the rate is variable and can fall. Reliance Bank's current rates are on its own website, and our savings accounts guide explains how variable rates behave.

Fixed term savings: your money is locked in until maturity

A fixed term deposit account works differently: you deposit a sum for a set period, the interest rate is fixed for the whole term, and you cannot get at the money until the term ends. Reliance Bank's personal fixed term accounts are available as individual or joint accounts, and you must be aged 18 or above to open one⁷.

The defining rule is that early withdrawals are not permitted during the term⁷. Once your money is in, it stays in until maturity. That makes a fixed term account suitable only for money you are certain you will not need during the term, because there is no way out, even for an emergency. If there is any doubt, the bank's 90 Day Notice Savings Account sits between the two: it pays a variable rate and lets you withdraw by giving 90 days' advance notice¹⁰.

When you open a fixed term account, you have 14 days from the day of opening to deposit your funds⁷. If you have not met the minimum balance after 14 days, the bank will close the account and return any funds to you⁷. So the account is not opened and funded in one step: there is a two week window to move the money in.

The interest rate is fixed for the term: the bank states plainly that the applicable interest rate will not change until the account matures at the end of your fixed term⁷. When interest is paid depends on the term. On the bank's 3 month, 6 month and 1 year fixed term accounts, interest is paid at maturity; on the 2 year account, it is paid annually⁷. This difference is worth checking before you choose a term, because it affects when you actually receive the money.

What happens when a fixed term ends

Reliance Bank will send you a reminder at least 21 calendar days before the expiry of the term, which it calls the Maturity Date⁷. The rules for banks require a firm to provide notice of the expiry of a fixed term in good time before the end of the term, explaining the consequences of expiry and the options available for dealing with the balance¹¹. The reminder is your prompt to decide what to do with the money.

If the bank does not receive any instructions from you on or before the Maturity Date, it will convert your account to a new Instant Access Savings Account, and the prevailing Instant Access Savings Account Terms and Conditions will apply⁷. In other words, doing nothing does not mean the money is returned to you: it rolls into a variable rate instant access account instead. That account's rate may be lower than the fixed rate you had, so it is worth diarising the maturity date and making a decision in the notice window.

Current accounts and overdrafts: how the charges work

The Reliance Bank Personal Current Account gives you unlimited access to your money. You can withdraw funds by Faster Payment, by writing to the bank's office, or by transferring online via Faster Payments, and the account supports Direct Debits and standing orders for paying bills⁶. The Visa debit card that comes with the account works wherever Visa is accepted, including overseas⁶.

Overdrafts work in a particular way at Reliance Bank, and it is worth understanding the mechanics before you use one. Interest is charged on any amount you borrow and is calculated quarterly, at the end of March, June, September and December, then applied on the 19th of the month following the quarter end, or the next working day⁶. So interest accrues through the quarter and is charged in a single quarterly hit rather than month by month. The overdraft is repayable on demand, which is standard for overdrafts: the bank can ask you to repay it¹².

Charges also apply when things go wrong. If you go into unauthorised overdraft, the bank charges a fee per transaction⁶. If a payment such as a Direct Debit, standing order or cheque is refused because there are not enough funds, a fee applies, though the bank does not charge it where the payment value is small or where refusing it would take the account only slightly overdrawn⁶. There is also a charge for international payments to beneficiaries within the EEA in a non euro currency, on a shared charges basis⁶. The current amounts are on the bank's own website, and its account terms set out the full list.

As background to these rules, since April 2020 banks and building societies can no longer charge more for an unarranged overdraft than for an arranged one, and overdraft pricing had to be shown as a single annual interest rate¹³. MoneyHelper, the free government backed money advice service, explains how overdraft charges work and what to do if you are worse off after these changes: banks might, for example, reduce or waive interest, offer a continuation of overdraft borrowing at the current rate, or agree a repayment programme¹³.

Who can get a Reliance Bank overdraft

Overdraft facilities at Reliance Bank are for existing customers only⁶. You cannot apply for one before you hold an account. The bank offers a maximum overdraft facility with no arrangement fee, subject to credit and affordability checks⁶.

The bank states it will not usually approve an arranged overdraft if, in the last six years, you have had any County Court Judgments issued against you, been declared bankrupt, or agreed to an Individual Voluntary Arrangement, or if in the last six months you have fallen behind with or missed any credit payments⁶. These are the bank's own lending criteria, and they mean your recent credit history matters when applying.

Your overdraft use is reported to credit reference agencies. Reliance Bank reports your arranged overdraft limit and usage as standard, and if you have been in a continuous unarranged overdraft for 30 or more days it will report your account to the agencies⁶. This can affect your credit file and how other lenders assess you. Our guide to credit scores and credit reports explains how this works.

If you are struggling with an overdraft, free help exists. StepChange, the debt charity, sets out ways to stop living in your overdraft, including asking the bank to reduce or remove it¹⁴. National Debtline notes that overdrafts are repayable on demand, meaning a bank can ask you to pay the whole amount back in one go if it chooses¹². A basic bank account with no overdraft is one option people in this situation sometimes consider, and our debt guide sets out the free advice charities and the routes available.

Reliance Bank no longer takes new residential mortgages

Reliance Bank has permanently stopped accepting new residential mortgage applications³. If you are looking for a mortgage, this bank is not an option, and the change is permanent rather than a pause. It still accepts commercial mortgages³.

Existing residential mortgage customers have not been abandoned: the bank continues to serve them, and has a dedicated mortgage contact number, 0207 398 5422, with Option 2 for existing mortgage enquiries¹⁵. If you have a Reliance Bank mortgage and are worried about payments, the bank asks you to have your account numbers, details of your income, monthly spending details and details of payments you make to others ready when you call¹⁵.

If you are buying a home and need a mortgage, our mortgages guide explains how mortgages work and our buying a home guide walks through the whole purchase. The lenders directory lists firms that do lend.

How to open a Reliance Bank savings account

You apply by completing the online savings application form on the bank's website⁷. The process is straightforward but has a verification step that catches some people out. After submitting your application, you receive a separate email from LexisNexis, the bank's identity verification partner, containing a secure link². You complete the identity check using a smartphone or tablet with a working camera⁹. The application is not finished until that check is done, so watch for the email, including in your spam folder.

This kind of remote identity check is now standard for online accounts: Which? notes that opening a bank account online usually involves proving your identity with documents such as a passport or other photo ID, and that current accounts with overdrafts appear on your credit report, with successive applications in a short space of time potentially affecting your score¹⁶. Reliance Bank cannot disclose account information without verification, so you will need to prove your identity again whenever you contact it about the account².

For fixed term accounts, remember the funding window: you have 14 days from the day of account opening to deposit your funds, and if you have not met the minimum balance after 14 days the bank will close the account and return any funds to you⁷. Personal savings accounts are available as single or joint accounts, and fixed term accounts require you to be 18 or above⁹.

Managing your account and getting help if you struggle to pay

You can manage a Reliance Bank savings account online via the digital banking portal, or by telephoning the Customer Experience Team on 0207 395 5400⁹. For overdraft or loan queries the number is 020 7398 5400, and for existing mortgages it is 0207 398 5422, Option 2¹⁵. There is no branch network, so the portal and the phone are the routes for everyday tasks.

If you are struggling to keep up with payments, contact the bank directly. Its payment difficulties page sets out what to have ready when you call: your account numbers, details of your income, your monthly spending, and details of payments you make to others¹⁵. The bank can then look at your situation. Independent advice for people with payment problems gives the same first step: contact your account provider, your bank¹⁵.

Beyond the bank, free and independent help is available. MoneyHelper offers free guidance on overdrafts and what banks can do for customers who are worse off after overdraft changes, such as reducing or waiving interest or agreeing a repayment programme¹³. Debt charities including StepChange and National Debtline provide free advice on overdrafts and on the wider options when debts build up¹⁴. Our debt guide brings together the free services and your rights, and our consumer protection guide explains where the Financial Ombudsman Service fits in if you have complained and are not satisfied with the bank's answer.

FSCS protection for Reliance Bank savings

Money held with Reliance Bank is covered by the Financial Services Compensation Scheme. The bank states that eligible deposits are protected up to £120,000 per eligible person, per bank, if the bank fails to meet its obligations¹. The FSCS is the UK's statutory deposit protection scheme, and its own protection checker lets you confirm cover for any bank before you rely on it¹⁷.

The limit is per person, per bank, not per account. If you hold more than one Reliance Bank account, a current account plus savings for example, the balances count together towards the same £120,000¹. Because Reliance Bank is a deposit-taking bank in its own right and appears on the Bank of England's list of deposit taking banks⁵, its limit is separate from any money you hold with other banks: £120,000 with Reliance Bank and £120,000 with another bank are each protected in their own right¹⁷.

Two practical points follow. First, if you have more than £120,000 with the bank, the excess is not covered, and the FSCS's own guidance on spreading money across different banks is the way to think about larger balances¹⁷. Second, balances above the limit are not protected if the bank fails, so anyone holding close to the limit may want to keep an eye on the total across all their accounts with the bank.