Question 1

What is CAF Bank?

Accepted Answer

CAF Bank is a specialized banking institution serving charities, social enterprises, and not-for-profit organizations in the United Kingdom. Wholly owned by the Charities Aid Foundation (CAF), CAF Bank operates with a mission to help charitable organizations manage their finances effectively, providing dedicated banking services tailored to the unique needs of the charity sector.

The bank serves over 14,000 charities and social purpose enterprises with £1.42 billion in deposits.

Question 2

When was CAF Bank founded?

Accepted Answer

CAF Bank was established as the banking arm of the Charities Aid Foundation. The Charities Aid Foundation itself traces its origins to 1924 when the National Council of Social Service established a Charities Department to encourage efficient giving. This department was later renamed the Charities Aid Fund.

The Charities Aid Foundation took its current name in 1974 when it became a fully independent organization. CAF Bank operates as a wholly owned subsidiary of CAF, providing specialized banking services to support the broader charitable mission.

Question 3

Where is CAF Bank headquartered?

Accepted Answer

CAF Bank is headquartered at 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JQ, southeast of London. This location serves as the bank's registered office and primary operational base.

The bank also maintains an office in central London at St Bride Street, EC4A 4AD, providing additional access points for clients in the capital.

Question 4

Where does CAF Bank operate?

Accepted Answer

CAF Bank operates throughout the United Kingdom, serving registered and unregistered charities, social enterprises, and community-interest groups across England, Scotland, Wales, and Northern Ireland. The bank provides services remotely through online and telephone banking rather than maintaining a traditional branch network.

Clients can access cash services through partnerships with HSBC and Royal Bank of Scotland (RBS) branches for deposits and withdrawals, and can deposit cheques at Post Office branches. This arrangement provides nationwide access without the overhead of proprietary branch infrastructure.

Question 5

What services does CAF Bank offer?

Accepted Answer

CAF Bank provides specialized financial services designed for charitable organizations:

Current Accounts: The CAF Cash Account (£5 monthly fee) offers everyday banking with 0.20% AER interest on positive balances, free bank transfers, card purchases, ATM withdrawals, and cash deposits (up to £2,000 free, then 75p per £100).

Savings Accounts: The CAF Gold Account provides instant access savings requiring £1,000 to open, with penalty-free withdrawals and competitive interest rates.

Lending: Loans ranging from £150,000 to £10 million for capital projects, property development, social housing, community facilities, and organizational growth. The bank has lent and committed £255 million to charities and social purpose enterprises.

Digital Banking: Online banking platform with dual authorization for payments, two-factor authentication via UniqueCode app, customizable user access levels, and enhanced security features. The bank recently launched improved online banking with faster payments, standing orders, and CHAPS capabilities.

Financial Solutions: Through CAF's subsidiary CAF Financial Solutions Ltd (CFSL), the bank offers access to investment options with ESG (Environmental, Social, Governance) focus and other financial products from selected partners.

All eligible deposits are protected up to £85,000 (recently updated to £120,000 for some products) by the Financial Services Compensation Scheme (FSCS).

Question 6

What makes CAF Bank unique?

Accepted Answer

CAF Bank is one of the UK's only banks dedicated exclusively to serving charities and social purpose organizations. This singular focus enables deep sector expertise and understanding of the unique challenges facing charitable organizations, from grant income volatility to restricted fund management.

The bank ranked joint first for overall customer satisfaction in the 2024 Charity Banking Survey and first for sector knowledge. CAF Bank won Charities' Bank of the Year at the 2021 Charity Times Awards, with its Customer Service Team reaching the finals of the UK Customer Satisfaction Awards.

Environmental organization Bank.Green named CAF Bank among the greenest UK banks in 2024, reflecting commitment to sustainable finance and responsible investment.

Both registered and unregistered charities can open accounts, providing access to banking services for emerging charitable organizations that may not yet have formal charity registration. The bank accepts applications from community-interest groups, demonstrating inclusive approach to financial access.

CAF Bank provides extensive educational resources and guidance for charity trustees on topics including investment oversight, securing funding, and building organizational resilience—services that extend beyond traditional banking.

Question 7

What type of financial institution is CAF Bank?

Accepted Answer

CAF Bank is a specialized retail bank and charity bank serving exclusively not-for-profit organizations. Unlike universal banks that serve all customer segments, CAF Bank maintains exclusive focus on charities, social enterprises, and community organizations.

The bank is authorized by the Prudential Regulation Authority (PRA) and regulated by both the Financial Conduct Authority (FCA) and the PRA under Financial Services Register number 204451. CAF Bank is registered in England and Wales under company number 1837656.

As a wholly owned subsidiary of the Charities Aid Foundation (a registered UK charity and the country's fourth-largest charity by income), CAF Bank operates within a unique ownership structure where banking profits support broader charitable aims rather than enriching external shareholders.

This structure distinguishes CAF Bank from both commercial banks (which prioritize shareholder returns) and credit unions (which are member-owned cooperatives), positioning it as a purpose-driven bank with charitable ownership and social mission alignment.

CAF Bank

in the United Kingdom 🇬🇧

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About CAF Bank in the United Kingdom