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 Â£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 Â£17 million to the charity sector, money which would otherwise have been swallowed up by banksâ profits.
âFor small and medium-sized charities these charges can be a huge problem, diverting funds from where theyâre really needed,â explained Gill Nunn, Director of Charity Financial Services Business Development at CAF Bank.
âHigh Street banks tend to lump all their charity clients together, without recognising the diversity of needs across the sector. Charities need to ensure theyâre getting the best deal, from a bank that understands their financial needs and that keeps its charges low.
âHigh Street banks made more than Â£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 charitiesâ needs. CAF Bankâs online banking service is secure, easy to set up and completely free.â