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Community groups face growing challenges with bank accounts
‘Our club is too small to put up with this charge,’ one treasurer of a local sports club told Which?
Treasurers of local clubs, societies and associations say it's becoming harder to manage community bank accounts, as branch closures continue and new fees are introduced.
Non-profit groups are the lifeblood of many communities – but several major banks appear to be pulling back from serving them.
Lloyds and Bank of Scotland, part of the same banking group, started charging clubs and societies £4.25 or £8.50 a month from 14 January 2025. Santander will introduce a monthly fee of £4.99 for its Treasurers Current Account from 1 October 2025.
So where can you still find a free community account? We spoke to one treasurer who has switched banks several times to save money for his local badminton club – but now worries he’s running out of options.
Community-focused banking is diminishing
When we surveyed the Which? Connect panel (15,483 people) in October last year, 15% of respondents said they had been a treasurer or signatory for a community bank account in the previous two years. The most common providers were Lloyds Bank (28%), Barclays (20%), NatWest (18%) and HSBC (11%).
Of those with experience managing these accounts, 30% said they had lost access to a local branch, while 20% had struggled to pay in cash. Others reported rising fees (10%) or the bank closing the account altogether (3%).
Making changes to a community bank account, such as adding signatories, was described by many members as ‘lengthy and not straightforward’ or ‘almost impossible’, in our survey.
One treasurer told us that ‘after years of having the account the bank decided it needed proof the organisation was genuine and asked the controlling people to prove their identity’ which took months of admin online and in-branch.
Another said their small society, with just £2,000 in the account and minimal turnover, faced ‘the same tortuous money laundering protection stuff that much larger ones have’, and moved providers after being asked for information about signatories that they didn’t have, which resulted in the account being frozen.
- Find out more: Is your local bank branch closing?
'Our club is too small to put up with this charge'
Andrew Fry, 74, from Benson, Oxfordshire, is the treasurer of a local private badminton club with 10 members and said he has been forced to keep changing the club’s bank account as branches have been shut or fees have been introduced.
‘The latest is Lloyds, which recently informed us that it will start charging a monthly fee. Our club is too small to put up with this charge, so we’ve reluctantly researched alternatives.
'We’ve found only one bank that will offer us free banking as a non-registered community club: Metro Bank. So, we have created an account with them – at not inconsiderable effort and patience. I’m not holding my breath for how long this new account will last.’
- Find out more: Is your bank leaving your behind?
Which banks offer community bank accounts?
If you're a treasurer looking for a new account, we've collated a list of bank accounts available to unincorporated clubs, societies and associations.
We’ve highlighted fees for online transactions and for paying in cash or cheques at a branch, but bear in mind that additional charges may apply – for example, for using a debit card abroad or making CHAPS or foreign currency payments.
Most banks impose an annual credit turnover limit, typically between £100,000 (The Co-operative Bank) and £250,000 (Lloyds, Metro Bank and Santander). If your organisation exceeds this, you may be moved onto a standard business account.
Some banks – including Barclays – and specialist providers such as Unity Trust Bank offer current accounts tailored for charities and community interest companies, which may be more cost-effective or better suited to your needs.
Virgin Money is now part of Nationwide. The building society told Which? there are currently no plans to change the account, though all products and services remain under regular review.
Challenger banks such as Monzo and Starling don’t offer community accounts at present. Starling has previously told Which? that clubs and organisations would need to be a registered charity or registered with Companies House to open up its business account and would not be able to open a personal account.
TSB's Club, Charity and Society Account is no longer on sale to new customers.
| Bank | Account | Main management fees | Monthly account fee |
|---|---|---|---|
| The Co-operative Bank | Charity and Community Bank Account | Free | £0 |
| Danske Bank [a] | Community Account | 5p for debit card debits, cash machine withdrawals, standing orders, electronic debits and 20p per cheque/£100 deposits at branches | £5 |
| HSBC [b] | Charitable Bank Account | Free digital payments, 40p per cheque, credit or withdrawal at branches | £0 |
| Lloyds | Community Account | 100 digital payments free/month (then 10p each), 50p per cheque and 75p/£100 at branches | £4.25 |
| Metro Bank | Community Current Account | 200 transactions free/month (then 30p each) and up to £10k/month deposited for free (then £1/£100) | £0 |
| NatWest [a] | Community | Free (unless turnover exceeds £100,000) | £0 |
| Santander [c] | Treasurer's Current Account | Free | £4.99 |
Correct at 20 August 2025 [a] In the case of Danske Bank and NatWest, one applicant must be an existing personal or business customer [b] HSBC says not all not-for-profit organisations will be eligible (must have a charitable purpose) [c] Santander will charge £4.99 a month from 1 October 2025 and says it is temporarily only supporting existing customers looking to open new business current accounts [d] Virgin Money excludes organisations in Northern Ireland and charges £6.50 a month for the account if you make more than 10 transactions per month (this account also lets you earn 0.35% cashback on debit card transactions)
- Find out more: Best bank and bank accounts 2025
This article uses insights from the Which? Connect panel, collected from research activities with our members. Find out how to get involved
