Choosing a bank

The relationship between an organisation and the bank it uses should be the same as it would be with any two businesses as banks offer a range of services and charge a range of costs.

Ask for an explanation of any jargon that you don't understand and be clear what you are getting for your money.

Before Approaching a Bank

• Decide whether a deposit or current account (or both) will be required.
• Try to estimate the approximate number of transactions that will pass through the account(s) each month.
• Ask which services they offer and the relevant charges for these services.

Before Opening an Account - ask the following questions and expect clear answers

• What charges will be made on the account with the expected level of activity that you have estimated?
• Can you have a copy of the bank's charges (tariff)?
• If you are offered free banking; ensure that it is for the duration of the account and not just short-term and check the limitations on transactions and financial limits
• What identification does the bank need and why?
• Can the organisation have a cheque book?
• How often will a bank statement be sent out?
• What level of interest do they offer?
• Will the account allow for regular bills being paid by standing order or direct debit?
• Is there a minimum deposit required to open an account?
• Is there a requirement that you must be a registered charity?
• Do they offer Internet Banking?
• What encashment facilities or arrangements are there?
• Is there a local representative in your area or someone that you can ask if you have any questions?

Once you have all this information, you can evaluate it against the needs of your organisation and decide on the next step.