Banking & investment

This scheme has been in existence for over 20 years and has around 500 participating accounts. The scheme is set up with Nat West Bank to provide PCCs and other church bodies with a reasonable level of interest on their bank current accounts. By pooling all participating bank account balances daily (including those of the diocese), larger sums can be placed on deposit generating a higher rate of interest return on an instant access current account.

Cash in this account should be the money to which you need to have access on a regular basis.  Previously the scheme generated a good rate of ‘notional’ interest (net of bank charges). Currently (2019) the notional interest rate is just over 0.6 per cent; this will increase slightly as the underlying deposits mature, assuming interest rates continue to rise a little.

Accounts within the CMS are ‘pooled’ for interest earning purposes. Every night, all the pooled funds (currently over £12m (2019)) are auto-transferred to a balancing account and from that approximately 80 per cent of the funds are then invested in 12m Fixed Interest Treasury deposits or 95 day notice accounts. Over the last year, the interest rates for reinvestment has increased  to rates around 0.8 per cent. The net interest earned (after pooled bank charges) is around 0.6 per cent.

Other advantages include simple process for change of signatories and  a simplified transfer process from another bank.

The CMS continues to offer a small return and charge-free banking; it is less appropriate for longer-term funds. The terms and conditions to allow interest to be charged on this current account, but at present there are no plans to make any interest charges within the CMS.

For details of how to join the scheme, contact us.

Managing your Nat West Account

All enquiries should be directed to the  Customer Services Team on 0345 835 1215 ,by email , or post to Corporate Service Centre, PO Box 2027, Parklands, De Havilland Way, Bolton BL6 4YU.  A useful list of bank contacts can be downloaded below.

One of the advantages of the Cash Management Scheme (CMS) is the simple process to change signatories without the need for ID Checks. Nat West has recently introduced random ID checks for security purposes. A new signatory may be asked to present ID at a Nat West branch of provide certified copies of ID through the post. Hopefully this will not happen very often but please contact Imogen Taylor if you have any problems or feedback.

Switching your account to Nat West

Nat West has an automated current account switch service to make it easier to transfer your PCC’s current account to them – see the download at the bottom of this page for further information.

Nat West Business Quick Deposits (BQD)

BQD is a quick and easy way for Nat West clients to pay in cash and cheques via the branch without having to wait whilst the deposit is checked. A specially designed tamper-evident wallet is used to make the deposit which is then posted through a secure deposit unit located in the banking hall of the branch. See our download at the bottom of this page.

Investing a PCC’s cash reserves

The national stewardship team has produced a short paper to guide PCCs through the wide range of alternatives for investments which are not equity linked, along with guidance on developing a policy on the level of reserves.

CBF Deposit Fund

The CBF Deposit Fund is an instant access account.  CCLA has announced an increase in the interest rate from 0.55% to 0.65%. This rate has been subsidised from other CBF income for a number of years. There is no guarantee that this subsidy will continue. This is a place to keep money which is not needed immediately but is expected to be spent in the next 2 – 5 years.

CCLA CBF Investment Fund

The CCLA CBF Investment Fund is not a bank account, but pooled fund investment. The CCLA Investment managers invest in a range of certifies which meet the Church of England ethical guidelines. The current investment return is just under 4% (net). The capital and income returns are not guaranteed, so this is more suited for longer term investments, particularly if the PCC wishes to generate an income stream.

Accepting payments by credit card

If you accept payments by credit card, there are a couple of matters you need to be aware of:

  • PCI DSS compliance - This is the credit card industry standard to ensure that the payment card information (PCI) you collect when someone pays you by credit card is securely processed, stored and transmitted by you (on paper, by phone or electronically). There are severe penalties for breaching the Regulations. Read more on the UK Cards’ Association website.
  • Unsolicited donations - You should be cautious of accepting any large unsolicited donations, especially if made by credit card, from a donor not known to the PCC, especially if the donor requires you to pass on some of the donation.  This could be part of a scam or a money-laundering scheme. The Government has advised that there has been a spate of frauds involving credit card donations.  Read more on the website.


Nat West automatic switcher service

Nat West Business Quick Deposits

Nat West bank contacts

Nat West SMART account maintenance form