Charities urged to be smart when it comes to banking

29 March 2007

With High Street banks receiving heavy criticism for making unlawful charges to people’s bank accounts, CAF (Charities Aid Foundation) is calling on charities to be equally vigilant when it comes to their banking.

Recent press reports estimate that up to one million people are preparing to sue their banks to reclaim charges for unauthorised overdrafts and bounced cheques, which generate around £4.7 billion in revenue for the big High Street banks.

CAF Bank, part of the Charities Aid Foundation, was the first bank set up exclusively for charities. By permanently offering high interest rates and low charges, CAF Bank has given back an estimated £17 million to the charity sector, money which would otherwise have been swallowed up by banks’ profits.

“For small and medium-sized charities these charges can be a huge problem, diverting funds from where they’re really needed,” explained Gill Nunn, Director of Charity Financial Services Business Development at CAF Bank.

“High Street banks tend to lump all their charity clients together, without recognising the diversity of needs across the sector. Charities need to ensure they’re getting the best deal, from a bank that understands their financial needs and that keeps its charges low.

“High Street banks made more than £40 billion in profit last year: charities should bear this in mind when challenging rates and fees. Online banking is an easier, cheaper solution for charities’ needs. CAF Bank’s online banking service is secure, easy to set up and completely free.”

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