Managing a school's finances effectively has never been more important. With a focus on getting maximum value for money to best deliver for children, we want to make sure schools have the best possible tools and information to make informed financial decisions.
That's why we've been working to help schools explore their banking options. We know that many schools may not have looked at their banking arrangements for years, potentially missing out on opportunities to earn better returns on their money or access services that could make financial management easier.
Why banking matters for schools
School banking isn't just about having somewhere to keep money safe. The right banking arrangements can help schools:
- Earn better interest rates on reserves and balances
- Reduce administrative burden through better online services
- Access specialist support that understands the education sector
- Benefit from services designed specifically for academy trusts and maintained schools
What we've been doing
Over the past year, we've been engaging with the banking sector to better understand what's available for schools. We've spoken with banks and building societies that offer services suitable for both single and multi-academy trusts, exploring everything from current accounts and savings products to the specialist support they can provide.
This work has helped us understand the landscape better - the different approaches banks take, the various products available, and the support offered to help schools manage their finances more effectively.
What we've found is encouraging; there's genuine competition in this space, with providers offering different solutions that could benefit schools in various ways.
Supporting schools to make informed choices
Based on this work, we've developed resources to help schools explore their options. This includes guidance on what to consider when looking at banking arrangements, and tools to help schools compare different offerings.
We want to be absolutely clear: we're not in the business of recommending specific banks or products. Every school's situation is different, and what works for one may not be right for another. Our role is to help schools understand what's available and support them to make informed decisions that best meet their individual needs.
Schools should always seek their own independent financial advice about what's best for their particular organisation. We cannot and do not provide financial advice - that's a decision for each school to make with appropriate professional support.
What schools can do
If you're responsible for your school's finances, it's worth taking time to review your current banking arrangements. Consider questions like:
- When did you last review your banking arrangements?
- Are you getting competitive interest rates on your balances?
- Do your current banking services meet your needs?
- Could better banking arrangements save you time or money?
Remember, even small improvements in interest rates can add up to meaningful amounts over time - money that could be invested back into your pupils' education.
To help you make informed decisions you can use the Department for Education’s online interest rate comparison tool.
Looking ahead
We'll continue to work with the sector to ensure schools have access to good information about their options. This is part of our broader commitment to helping schools get the best value from every pound they spend.
Financial management may not be the most visible part of running a school, but getting it right is crucial in ensuring more resources are available for what truly matters – giving every child the best possible education.
If you're thinking about your school's banking arrangements, take time to explore what's available, seek appropriate, trusted advice, and make sure your money is working as hard as possible for your pupils.
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