Co-operative Bank switching incentive offers £300 for charity accounts

The Co-operative Bank switching incentive offers £300 to eligible organisations that open a Charity and Community Account, use it actively and complete a full switch, the bank announced. The bank also removed the previous £2m turnover ceiling on the account, widening access to co-operatives, credit unions, charities and community interest companies of any size.

The changes expand the pool of organisations able to use the account, which is aimed at groups whose work is not primarily organised around profit. The Co-operative Bank said the move is intended to help more organisations direct money toward social and community activity.

Who can get the Co-operative Bank switching incentive?

The £300 offer is available to eligible organisations that open a Charity and Community Account, actively use the account and carry out a full switch, according to The Co-operative Bank. The bank named co-operatives, credit unions, charities and community interest companies among the organisations that can now access the product without a turnover cap.

A full switch generally means moving an organisation’s banking arrangements from one provider to another under the terms set by the receiving bank. The Co-operative Bank’s announcement did not give further operational details beyond the requirement that organisations complete a full switch and use the account actively.

The Charity and Community Account currently carries no monthly account fee and no charges for everyday banking transactions, the bank said. Those features make pricing a central part of the offer for organisations that rely on donations, member contributions, grants or trading income to fund their activities.

What changed on the Charity and Community Account?

• The Co-operative Bank introduced a £300 switching incentive for eligible organisations.
• Organisations must open a Charity and Community Account, actively use it and complete a full switch to qualify.
• The bank removed the previous £2m turnover limit on the account.
• Co-operatives, credit unions, charities and community interest companies of any size can now access the account, according to the bank.
• The account currently has no monthly fee and no charges for everyday banking transactions.

Lisa Galley, head of business banking products at The Co-operative Bank, said purpose-led organisations have an important role in communities by supporting people and creating positive change.

“Every pound matters for organisations focused on making a difference,” Galley said. “By expanding access to our Charity and Community Account and introducing a £300 incentive, we're helping more organisations keep their resources focused on the communities and causes they serve.”

The announcement places the account within the bank’s business banking offer for organisations with social or community aims. The removal of the turnover threshold means the product is no longer limited by the previous £2m cap, although eligibility for the switching incentive still depends on meeting the bank’s stated conditions.

This story draws on original reporting from Finextra Research.