Business bank account for a CIC: which banks accept Community Interest Companies?

Community Interest Companies often fall through the cracks of UK business banking. They're real limited companies, but not every bank wants to deal with the extra CIC layer.

By Sam Morris

Yes, a CIC can open a UK business bank account. The problem is that many of the easy app-based business accounts aren't built for CICs.

That's the bit most founders discover too late. You form the Community Interest Company, get the Companies House number, start applying for "simple" business accounts, and then hit rejection after rejection. Mettle says no. Tide says no. Monzo doesn't look like a proper route. Starling may be possible in some cases, but it's not a guaranteed yes.

So the honest answer is this: if you run a CIC, start with banks that understand community organisations, charities and social enterprises. Co-operative Bank, Unity Trust Bank, Barclays and some high-street community banking teams are usually more realistic places to look than ordinary small-business app accounts.

A CIC is still a limited company, so the money should sit in the company's name, not in a director's personal account. If you want the broader limited company reasoning, see our guide to whether a limited company needs a business bank account.

Why CICs struggle with business banking

A Community Interest Company isn't a normal trading limited company.

It's a limited company created to benefit a community. It has a community purpose, an asset lock and oversight from the Office of the Regulator of Community Interest Companies. CICs also file a CIC34 community interest company report with their accounts.

That doesn't make CICs suspicious. It makes them different.

The problem is that many digital business account providers are designed around very simple structures: sole trader, ordinary limited company, one or two directors, straightforward trading activity, clean ownership, no unusual governance.

A CIC can break that model.

It may have several directors. It may receive grants. It may work with vulnerable groups. It may hold restricted funds. It may have community stakeholders. It may not distribute profits like an ordinary limited company. It may need more than one signatory. It may have a constitution and CIC-specific articles that need reading properly.

To a good community banking team, that's normal. To a fast app-bank onboarding system, it can be awkward.

That's why rejection from an app bank doesn't mean your CIC isn't legitimate. It usually means your CIC doesn't fit the provider's supported account types.

If Mettle, Tide or Monzo rejected your CIC

This is where a lot of CIC founders start.

They search for a free business account, find the same challenger banks everyone recommends, apply, and get nowhere.

Mettle

Mettle isn't a CIC route. Its eligibility criteria currently list Community Interest Companies as unsupported.

That's useful to know because it stops you wasting time trying to decode the rejection. If your CIC applied to Mettle and got declined, the answer may simply be: Mettle doesn't support CICs.

Tide

Tide is often suggested for small limited companies, but CICs are different. Tide's current help centre states it's unable to service businesses operating as a Community Interest Company.

That matters because Tide can be a realistic option for many ordinary companies, and its accounts are provided through ClearBank for eligible FSCS-protected deposits. But for CICs, that doesn't solve the eligibility issue.

Don't put Tide at the top of your list unless its CIC wording changes.

Monzo Business

Monzo Business is attractive for ordinary small companies, but CIC founders shouldn't treat it as a reliable CIC option.

Monzo's business account eligibility is aimed at sole traders and limited company directors, but it doesn't offer the kind of clear CIC route you want before relying on it for grants, project funding or community income.

Frankly, if you need an account quickly for a CIC, start somewhere more CIC-friendly.

What kind of account does a CIC need?

A CIC doesn't necessarily need an account with "CIC" in the product name.

The account might be called a:

Business current account
Charity account
Community account
Charity and community account
Social enterprise account
Not-for-profit account

The name is less important than the eligibility.

The key question is: does the provider accept Community Interest Companies?

A CIC isn't automatically a charity. It's a company. Some CICs are very close to the charity and social enterprise world, but legally they aren't the same thing as registered charities. That's why some "charity accounts" accept CICs and others may not.

For a new CIC, it's also worth reading our guide to a business bank account for a new limited company, because a lot of the basic checks are the same: Companies House details, director ID, address checks, business activity and source of funds.

Which banks accept CICs?

There's no perfect universal answer. CIC banking depends on your turnover, structure, signatories, source of funds, whether you need branches, and how quickly you need the account.

But these are the realistic places to start.

Co-operative Bank

Co-operative Bank is one of the strongest starting points for CICs.

Its Charity and Community Bank Account is aimed at registered charities, co-operatives, credit unions and community interest companies. That matters. You're not trying to force a CIC into a product built for ordinary small companies.

The fit is obvious for many CICs: ethical positioning, community banking, and a product that recognises CICs as a real category.

The trade-off is that it may feel more traditional than the app banks. The application may take longer. You may need to provide more documents. But for CICs, that's often a feature rather than a bug. A bank that asks the right questions is usually better than an app that rejects you because it doesn't support your structure.

Co-operative Bank is a good first place to check if your CIC wants a proper community banking route without pretending it's a normal profit-maximising Ltd.

Unity Trust Bank

Unity Trust Bank is another serious option for CICs and social enterprises.

It positions itself around ethical banking and organisations delivering positive social impact. That's much closer to the world of CICs than most challenger-bank marketing pages.

Unity isn't likely to be the cheapest or slickest option for every tiny CIC. Its business current account carries a monthly fee, and the experience is more specialist than "download the app and open in ten minutes". Check Unity's current tariff before applying.

But that may be exactly what a CIC needs.

If you're applying for grants, handling public-benefit projects, managing restricted funds, or working with local authorities, you may care less about a pretty debit card and more about whether the bank understands your organisation.

Unity Trust Bank belongs high on the shortlist for serious CICs.

Barclays

Barclays is one of the more relevant high-street options because its Charity Impact Account eligibility includes community interest companies.

That makes it a proper option to investigate, especially if your CIC needs a recognised high-street name, branch access, cheque handling, cash services or a relationship with a large bank.

The likely downside is speed. High-street applications can be slower and more document-heavy than digital accounts. That can be frustrating if you're waiting for a grant payment or trying to launch quickly.

Still, Barclays is worth checking because it clearly has a route for CICs. That's more than you can say for many app-based providers.

NatWest

NatWest has community banking options and can be relevant for CICs, although you should check the correct account route before applying.

This is important because CICs can sit awkwardly between "company", "charity" and "community organisation". Depending on your structure and activity, NatWest may route you towards a community account or a standard business account.

The practical point is simple: don't apply without reading the eligibility carefully. If the form is designed for clubs, societies or registered charities and doesn't obviously fit a CIC, speak to the bank first.

NatWest may be worth considering if you want a mainstream bank, branch access and a more traditional onboarding process.

Lloyds

Lloyds is another high-street option to check, especially for community and not-for-profit organisations.

The caveat is that CIC-specific wording isn't always as clear as Co-operative Bank or Barclays. That doesn't mean Lloyds can't work. It means CIC founders shouldn't assume the route is obvious.

If you're considering Lloyds, check whether your CIC fits the community account criteria, standard business account criteria, or another route. Have your Companies House details and CIC documents ready before speaking to them.

Reliance Bank

Reliance Bank is a smaller ethical bank and may suit some CICs, particularly those that care about social impact alignment.

It offers business and charity current accounts and positions its lending around organisations delivering positive social impact in the UK. That makes it more relevant than a generic small-business app account.

The trade-off is that it's smaller and may not suit every organisation. Check fees, eligibility, online banking, signatory rules and whether your CIC fits its current account criteria before applying.

Starling

Starling is the app-based provider to treat carefully.

Its help material lists Community Interest Companies among company types eligible for a business current account. That's positive. But Starling still reviews businesses against wider eligibility criteria, and it isn't the same as saying every CIC will be accepted.

For a simple UK-based CIC with straightforward directors, clean Companies House records and normal activity, Starling may be worth checking. But don't rely on it as your only plan, especially if you have grant deadlines, multiple signatories, unusual governance, non-UK resident directors or anything else that could make the application less standard.

If your CIC has overseas directors, also read our guide to a business bank account for a non-UK resident director, because director and PSC residency can create a separate banking problem.

Triodos

Triodos has a strong ethical reputation, so it naturally comes up in CIC banking discussions.

But there's a catch: Triodos isn't currently accepting new applications for business and charity current accounts. It does offer business and charity savings and deposit products, but that isn't the same as a day-to-day current account for paying suppliers and receiving project income.

So Triodos may be relevant later if your CIC has reserves to place on deposit. It isn't where I'd start if you need a working current account for a new CIC.

Which providers usually don't work for CICs?

This is just as important as the shortlist.

Mettle

No. Mettle currently lists CICs as unsupported.

Tide

No, based on current Tide help centre wording. Tide currently says it cannot service Community Interest Companies.

Monzo Business

Not a reliable CIC route. It's built around simpler sole trader and limited company use cases, and CIC founders shouldn't treat it as a clear yes.

Wise, Airwallex and Revolut

These may be useful in certain situations, especially for international payments or multi-currency activity. But they aren't the default answer to "we need a CIC current account".

Wise and Airwallex aren't UK banks with ordinary FSCS-protected business current accounts. They're useful payment and e-money style providers, but safeguarding isn't the same as FSCS protection.

Revolut Bank UK Ltd became a licensed UK bank on 11 March 2026, but migration and account entity still matter. You should check which Revolut entity your specific business account would sit with before relying on FSCS protection.

For most CICs, the first priority is finding a provider that accepts the legal structure. International payment tools can come later.

What documents should a CIC prepare?

The better your documents, the less painful the application.

A CIC should usually have ready:

Companies House number
Certificate of incorporation
Evidence that the company is a CIC
CIC-specific articles of association
Director details
PSC or control details
Proof of ID and address for key people
Registered office address
Trading or operating address, if different
Explanation of the community purpose
Asset lock information
Latest accounts, if already filed
CIC34 report, if already available
Source of funds
Grant award letters or funding evidence
Expected turnover
Expected payment types
Signatory or mandate requirements

A new CIC may not have accounts or a CIC34 report yet. That's normal. But if your CIC has already completed a reporting period, have the latest documents ready.

Don't assume the bank understands your project from the company name. Explain what the CIC does in plain English. "Community wellbeing CIC" is vague. "We run funded mental health workshops for adults in Leicester, paid through local authority grants and private training contracts" is much clearer.

Why banks ask CICs extra questions

Banks aren't just being difficult. They have anti-money-laundering, fraud prevention and regulatory obligations.

For CICs, they may ask more because:

The organisation may receive grants or donations
Funds may be restricted for a specific purpose
Beneficiaries may be vulnerable people
There may be several directors or signatories
Income may not look like ordinary trading income
The asset lock changes how profits and assets can be used
Public or community funds can create extra reputational risk
The bank needs to understand who really controls the company

This is why a strong application matters.

If your CIC has a clean structure, explain it clearly. If it has several directors, show who controls what. If funding comes from grants, provide the award letters. If you receive donations, explain how you collect and use them.

The worst application is the one that says almost nothing and expects the bank to guess.

The asset lock, briefly

The asset lock is one of the defining features of a CIC.

In plain English, it helps make sure the CIC's assets and profits are used for community benefit rather than simply extracted for private gain. That's part of what makes a CIC attractive for social enterprises and community projects.

For banking, the asset lock matters because it makes the company different from an ordinary limited company. It may affect how a bank thinks about the organisation's purpose, reserves, lending and profit distribution.

It doesn't make the CIC unbankable. It just means you should apply to providers that understand the structure.

Bank vs EMI: why it matters for CICs

This distinction matters for every business, but it matters even more if your CIC holds grant money, donations or restricted project funds.

A UK bank with a full banking licence is covered by the Financial Services Compensation Scheme for eligible deposits. The FSCS deposit protection limit is £120,000 per eligible depositor, per authorised firm.

An e-money institution is different. EMIs safeguard customer funds, but safeguarding isn't the same as FSCS protection. If an EMI fails, you aren't relying on the same statutory deposit compensation scheme.

This doesn't mean EMIs are useless. They can be excellent for payments, international transfers and operational flexibility.

But for a CIC holding meaningful community funds, you should think carefully before keeping large balances outside an FSCS-protected bank account.

Also remember that FSCS protection applies per authorised firm, not per brand name. Some banking brands share a banking licence. Always check the actual authorised bank behind the account.

Does Making Tax Digital apply to CICs?

Making Tax Digital for Income Tax doesn't apply to CICs because CICs are companies.

MTD for Income Tax is aimed at sole traders and landlords with qualifying income above the relevant thresholds. It doesn't apply to limited companies, and a CIC is a type of limited company.

MTD for Corporation Tax has been shelved.

A CIC may still fall under MTD for VAT if it's VAT-registered. That's a separate issue.

The practical point is this: MTD for Income Tax isn't the reason your CIC needs a business bank account. The real reasons are clean company records, grant tracking, director accountability, Companies House filings, CIC34 reporting and keeping community funds separate from personal money.

Common CIC banking mistakes

Applying to ordinary app accounts first

This wastes time. If the provider doesn't support CICs, the application won't become better because your project is worthy.

Using a director's personal account

Don't do this. CIC money should sit in the CIC's name. Mixing personal and CIC money creates accounting, governance and trust problems.

Not explaining the community purpose

Banks need to understand what the organisation actually does. Make it specific.

Hiding grant or donation income

Don't describe all income as "sales" if it's really grants, donations, contracts or restricted funding. Banks care about the source of funds.

Ignoring signatory needs

Some CICs need more than one person to authorise payments. Check whether the account supports your governance model before opening.

Choosing purely on "free"

Free is nice. Being accepted, protected and usable is better.

A free account that rejects CICs is worth exactly £0 to you.

Our view

For most CICs, I'd start with Co-operative Bank, Unity Trust Bank or a high-street community banking option before wasting time on ordinary app-based business accounts.

Co-operative Bank is one of the clearest fits because it explicitly caters for community interest companies. Unity Trust Bank is strong for social enterprises and impact-led organisations. Barclays is worth checking because its Charity Impact Account includes CICs. NatWest and Lloyds may also be realistic, but you need to check the route carefully.

Starling may be worth a look for a simple UK-based CIC, but I wouldn't rely on it as the only option. Mettle and Tide aren't where I'd start because their current eligibility wording excludes CICs. Monzo Business isn't a clear CIC route either.

The bigger point is this: a CIC shouldn't pretend to be an ordinary small limited company just to squeeze through an app-bank form. You have a legitimate structure. Use a provider that understands it.

FAQ

Can a CIC open a business bank account?

Yes. A Community Interest Company can open a UK business bank account, but not every provider accepts CICs. You usually need to look at community, charity or social enterprise banking options, not just ordinary small-business accounts.

Which banks accept Community Interest Companies?

Co-operative Bank and Barclays have account routes that explicitly include CICs. Unity Trust Bank is also a strong option for social enterprises and impact-led organisations. NatWest, Lloyds, Reliance Bank and Starling may be worth checking depending on your structure, but eligibility needs care.

Why did Mettle reject my CIC?

Mettle currently lists Community Interest Companies as unsupported. So if your CIC was rejected, it may simply be because Mettle doesn't support that legal structure.

Can a CIC use Tide?

Tide's current help centre says it's unable to service businesses operating as a Community Interest Company. That could change, but based on current wording, Tide isn't where I'd start for a CIC.

Can a CIC use Monzo Business?

Monzo Business isn't a clear CIC route. It's better known for ordinary sole trader and limited company accounts. CIC founders should check eligibility carefully and shouldn't rely on Monzo as the main option before grant or funding deadlines.

Is a CIC a charity for banking purposes?

Not automatically. A CIC is a limited company with a community purpose and asset lock. Some charity or community accounts accept CICs, but you should check the provider's eligibility rather than assuming "charity account" always includes CICs.

What documents do I need to open a CIC bank account?

Usually: certificate of incorporation, CIC-specific articles, company number, director details, PSC details, ID and address documents, explanation of the community purpose, asset lock details, source of funds, and CIC34 report or accounts if already available.

Does Making Tax Digital apply to CICs?

MTD for Income Tax doesn't apply to CICs because CICs are companies. VAT MTD can apply if the CIC is VAT-registered. CICs still need proper company records, accounts and CIC34 reporting.

Sam Morris is the pen name of the founder of comparebusinessbanking.com.

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