Frequently asked questions
What are charity savings accounts?
They are accounts charities can use to earn interest on money they don’t need to keep in a current account for day-to-day expenses. Most charity current accounts do not pay interest on positive balances, so if you keep surplus cash in your charity current account you are probably missing out on a simple way of making your money work harder and earning your charity extra revenue.
What is the difference between a savings account and a current account?
A charity savings account is very simple in that it allows you to set aside excess money in your charity to keep it separate from the account you use for everyday income and expenditure and to earn interest on surplus money which would otherwise earn little or no interest in your current account. A charity savings account doesn’t usually come with a payment card, cheque book, overdraft or other facilities a current account may offer.
Are there different types of charity savings accounts?
There are three common types of savings account:
Fixed term bonds – These allow you to set aside a one-off sum for a specified length of time and earn an agreed rate of interest during that period. However, with most fixed term bonds, you cannot withdraw your money during the term of the bond, so you should only deposit funds you won’t need to access during that time.
Notice accounts – These allow you to deposit funds whenever you wish and to earn an agreed variable rate of interest on your balance. However, you can only make withdrawals after giving the required notice. For example, with a 40-Day Notice account you would have to request a withdrawal 40 days before you needed to have the money. These accounts offer more flexibility than fixed term bonds and usually pay a slightly lower interest rate as a result.
Instant access accounts – These offer the greatest flexibility as you can withdraw your money at any time. However, these typically pay the lowest rates of interest of the three main types of charity savings accounts.
How do I apply for an account?
Once you have decided which account you would like to open, simply click on the ‘Apply’ button in the Summary Box window for that account and complete the application form. You can send the form via email to [email protected] or by post to Deposits, United Trust Bank, One Ropemaker Street, London, EC2Y 9AW.
What are the types of savings accounts I can open with United Trust Bank?
We offer three types of savings accounts: Fixed Term Bonds, Notice Accounts, and a Notice Tracker Account, which tracks the Bank of England Base Rate.
What types of charities can apply for a savings account?
We accept applications from registered charities and charitable incorporated organisations (CIOs). Charities must be registered on the Charities Commission with a minimum of two trustees, operating in and benefitting areas solely in the UK, where the governing document is not a Trust Deed. In addition, CIOs must be registered on Companies House with a minimum of one director.
Do you accept applications from Charitable Trusts?
Charitable Trusts are normally governed by a Trust Deed and can often be more complex, and United Trust Bank are not currently accepting any applications from charities governed by a Trust Deed.
Do you accept applications from exempt or excepted charities?
No, we do not currently accept applications from any charity that is not registered with the Charities Commission.
What are the benefits of a charity savings account?
Having a charity savings account brings many benefits. As well as earning your charity additional revenue, it can help you plan for future expenses, such as equipment upgrades, marketing campaigns or hiring extra staff. It can also create an emergency fund for unexpected expenses, help future credit applications and can show potential investors and partners that you are a credible charity taking your long term financial health seriously.
A charity savings account is a great way to make your money work harder and earn extra revenue, so don’t delay and apply for your account now.
How do I choose the best charity savings account?
This decision should be based on your long-term goals and factor in any immediate needs. If you have funds spare that you can afford to set aside for a fixed period of time, a Fixed Rate Bond is an excellent way to grow those funds with a higher interest rate. For more flexibility, a Notice Account may be more attractive as it will allow you to withdraw funds provided you give the required notice period.
What is the minimum and maximum I can invest?
Are charity savings protected by the FSCS?
Can my charity hold multiple savings accounts?
There is no limit on how many savings accounts you open with United Trust Bank, so you can choose to spread your funds over multiple accounts if you wish, both with our fixed rate and notice products.
If I am involved with more than one charity, can I open accounts for each of them?
Yes, though please note you need to have a different email address for each charity.
Can I open a charity savings account if I or another trustee lives outside of the UK?
At the time of making your application, any named signatory or trustee must be an individual who permanently resides in the UK for tax purposes, and we reserve the right to decline an application if any signatory or named trustee is resident outside of the UK.
What information will I need to provide as part of my application?
When submitting your application, you will need to provide details of your charity, including a certified copy of your governing document(s), and any individuals you want to operate as signatories on your account, where at least two are trustees of the charity. If your charity is also a limited company, you will need to provide details of at least one director and any shareholders (if applicable) that own 25% or more of the shares (irrespective of the share class) in your company.
Whilst we run an electronic identity check upon receipt of the application, we may on occasion require manual documents or further information to confirm an individual’s identity.
Why have I been asked to provide more information?
As part of our customer due diligence, there may be instances when we need clarification on the information you have provided. This doesn’t mean your application has not been accepted, but it may delay the account being opened. It is therefore important that any information you provide is up-to-date and accurate.
How do I register for online banking?
We are working on an online banking service for our business and charity customers, and once this is available, we will invite you to register. In the meantime, you can manage your account by email, phone and post.
How do I know you have received my funds if I can’t access the account online?
For our fixed savings accounts, when we have received the full pledged deposit we will send a confirmation to you. For our notice accounts, we will send you a receipt with each deposit you make.
If you register a mobile number with us as part of your application, we will send you a text message each time you send us funds – regardless of the type of account you hold.
My auditor requires confirmation of balances. How can they request this from you?
How often are statements sent?
Statements are sent annually, either on the anniversary of the fixed term’s start date or, for our notice accounts, after interest is applied on 31 October each year.
Should you prefer more frequent statements, please email [email protected] or call us on 020 7190 5599 between 9am and 5pm Monday to Friday, where our team will be happy to help you.
Can I withdraw any funds early from my account?
We do not permit early withdrawals from our Fixed Term Bonds unless under exceptional circumstances, and entirely at our discretion. However, should there be an immediate need for funds, please email [email protected] detailing the reason funds are required. We may request supporting documents in order to make an informed decision.
For our Charity Notice Accounts, you are allowed to withdraw up to 20% of your balance penalty-free and without notice per 12-month period.
How do I update the signatories on my account?
If you want to add or remove a signatory on your account, you will need to complete a new mandate found under the ‘Change of Charity Signatory Form’ here. The form can be sent by email to [email protected] or by post to Deposits, One Ropemaker Street, London, EC2Y 9AW. Please ensure any signatories to be removed also sign the mandate, otherwise we will not be able to remove them. Meeting minutes confirming a signatory’s departure or Deeds of Resignation/Retirement are also acceptable.
If we are not able to confirm a new signatory’s identity electronically, we will ask you for a copy of their ID. We will let you know when we have updated the signatories.
What happens to the funds when the account reaches maturity?
We will both write to you and email you (if you have an email address registered with us) approximately two weeks before your account is due to mature, outlining your options for reinvestment.
It is important that you provide your instructions before the maturity date to secure any preferential existing customer rate you are offered. If we do not receive instructions by the maturity date, your funds will be transferred to a holding account paying just 0.10% AER gross, where they will remain for a maximum of 28 days before being returned to the nominated bank account we hold on file for you.