If you are setting up a Community Interest Company (CIC), the first questions you will likely ask is:
What is a CIC Account? and How Do I Get One?
In this guide, we explain what a Community Interest Company (CIC) is, the purpose of a CIC account, and why having a dedicated account is important for the effective management of your organisation’s finances. We also outline how you can easily open a CIC account with Wave Community Bank.
To get started, download our application form at https://wavecb.org.uk/wp-content/uploads/2023/01/Business-membership-Jan-23-1.pdf or visit www.wavecb.org.uk/business-savings for further information. Alternatively, contact our friendly team on 0300 303 3188, who will be happy to provide guidance and support throughout the application process.
What is a Community Interest Company (CIC)?
A Community Interest Company, commonly known as a CIC, is a special type of limited company created to benefit the community rather than private shareholders. CICs are often established to tackle social issues, support vulnerable people, improve local communities, provide education, create employment opportunities, or deliver other activities that generate positive social impact.
Unlike traditional businesses, CICs must demonstrate that their work benefits the wider community and are regulated to ensure profits are used primarily for their social purpose. Many charities, social enterprises, community projects, and not-for-profit organisations choose the CIC structure because it combines the flexibility of a company with a clear commitment to social good.
What is a CIC Account?
A CIC account is a savings or banking account held in the name of a Community Interest Company.
It allows your organisation to:
- Receive grants and funding
- Accept donations and income
- Demonstrate financial governance
- Manage organisational funds separately from personal finances
- Build credibility with funders and stakeholders
Without a dedicated account in the CIC’s name, it can be difficult to operate effectively and access many funding opportunities. For most CICs, opening an account is one of the first and most important steps after incorporation.
Why Does a CIC Need an Account?
A CIC cannot operate professionally without an financial account in its own name. Many grant providers, local authorities, and funding bodies require payments to be made directly into an organisation’s account. Using personal accounts is generally not acceptable and can create governance and compliance concerns.
Having a dedicated CIC account helps demonstrate transparency, accountability, and good financial management. Simply put, if you want your CIC to grow, attract funding, and deliver services effectively, you need an account designed for your organisation.
Why CICs Are Turning to Credit Unions for Faster, Fairer Accounts
Many newly-formed CICs are finding it increasingly difficult to open accounts. Lengthy application processes, extensive paperwork requirements, and delays of several weeks or even months can prevent organisations from getting started when they are needed most. This is where credit unions are making a real difference.
Credit unions understand community organisations because they exist to serve communities themselves. Both CICs and credit unions share similar values: supporting local people, strengthening communities, and putting purpose before profit.
At Wave Community Bank, we provide a simpler and often faster route for CICs looking to establish their finances. Our application process focuses on the information that matters, with support available from real people who understand the needs of social enterprises and community organisations. Rather than being held back by unnecessary delays, CICs can focus on what matters most: creating positive change in their communities.
How Do I Get a CIC Account with Wave Community Bank?
Wave Community Bank offers Community Group / Business Savings Accounts that are suitable for Community Interest Companies.
Opening an account is straightforward.
Step 1: Check Your Eligibility
Your CIC must be based within Wave Community Bank’s common bond area, which covers East Sussex, Brighton & Hove, Kent, Medway and the London Borough of Bexley.
Step 2: Complete an Application Form
Download and complete the Business Membership Application Form – https://wavecb.org.uk/wp-content/uploads/2023/01/Business-membership-Jan-23-1.pdf
You will need to provide details about your organisation and its authorised representatives.
Step 3: Submit Supporting Documents
Depending on your organisation, you may be asked to provide documents such as:
- CIC registration details
- Governing documents
- Details of authorised signatories
- Identification documents where required
The form includes details of the documents that need to be submitted with it.
Step 4: Open and Fund Your Account
Once your membership has been set up, your CIC can begin saving and managing its funds through Wave Community Bank.
Why Choose Wave Community Bank?
Wave Community Bank is a not-for-profit credit union dedicated to helping local people, businesses, community groups, and social enterprises thrive.
Benefits include:
- Ethical and community-focused financial services
- Friendly support from a local team
- Faster and simpler application processes
- Savings protected by the Financial Services Compensation Scheme (FSCS) up to £120,000
- A trusted organisation serving East Sussex, Brighton & Hove, Kent, Medway and the London Borough of Bexley.
Credit unions exist to benefit their members and communities. This makes them a natural financial service partner for Community Interest Companies whose primary purpose is creating social value.
Can a CIC open an account with a credit union?
Yes. Many credit unions, including Wave Community Bank, offer accounts suitable for Community Interest Companies and other community organisations.
Is a CIC the same as a charity?
No. While both organisations can create social impact, a CIC is a company structure designed specifically for community benefit, whereas charities are regulated under charity law.
Can a CIC receive grants without an account?
Many grant providers require funds to be paid directly into an account held in the organisation’s name, making an account essential for most funding applications.
Is an credit union account a current account?
Some credit unions offer current accounts, but generally if a CIC opens an account with a credit union, it will be a savings account so it will not have a debit card and cannot be used to transact like a current account.
Are there any charges with a credit union CIC account?
There is a one-off membership fee of £5 and you need to deposit £1 to open the account. Otherwise you will not be charged for deposits and withdrawals are free when done online. If you telephone us to request a same-day withdrawal there is a £1 charge. There is no charge for a telephone withdrawal for the following business day.
Is my money protected?
Yes. Eligible deposits held with Wave Community Bank are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000.
Get Started Today
If you’re setting up a Community Interest Company and need a simple, community-focused place to manage your organisation’s money, Wave Community Bank is here to help.
Download our Business Membership Application Form here https://wavecb.org.uk/wp-content/uploads/2023/01/Business-membership-Jan-23-1.pdf or visit www.wavecb.org.uk/business-savings for further information.
The sooner your CIC account is open, the sooner your organisation can focus on delivering the positive change your community needs.
Summary
A Community Interest Company (CIC) account is a dedicated account that enables a CIC to receive funding, manage finances, and operate effectively while demonstrating strong financial governance. This article explains what a Community Interest Company is, why having an account in the organisation’s name is essential, and how to open a CIC account with Wave Community Bank.
It also explores why many CICs are turning to credit unions to open accounts, benefiting from faster account opening, simpler processes, and support from organisations that share their community-focused values. As a not-for-profit credit union serving Brighton & Hove, East Sussex, Kent, Medway and Bexley, Wave Community Bank provides CICs with an ethical, secure, and community-driven financial solution, helping them get up and running quickly so they can focus on creating positive change.