Louise Davy, Chief Financial Officer at South East Essex Academy Trust (SEEAT), shares how strategic banking changes delivered around £200,0001 in additional income.
We had a system that had worked well enough in the past – but recognised times were changing. With eight and soon to be nine schools across primary and secondary phases, the trust was managing multiple individual bank accounts, each requiring separate oversight and administration.
We are a trust that believes in letting schools have autonomy, but with the change in interest rates, it became clear that we were going to be losing out financially by not getting the best returns we could on our bank balances.
The challenge of multiple accounts
Our original structure reflected a common approach across many multi-academy trusts. Each school maintained its own bank account, with head teachers and finance staff responsible for day-to-day banking operations including authorising payroll runs. This created a complex web of financial management that became increasingly inefficient as the trust grew, with plans to reach nine by January 2026.
We have eight schools, which meant 16 people were involved in payroll authorisation because you need two signatories in each school. Add in central payment runs, and we had 18 people involved every month. Now we have just two people handling everything centrally.
Administrative requirements extended beyond just numbers as our central finance team had to track monthly banking tasks for all schools to mitigate potential risks around critical payments like payroll.
The consolidation solution
Our solution came through a systematic consolidation of banking arrangements, moving from individual school accounts to one central account. This wasn't just about simplification – it was about maximising the financial potential of the trust's reserves.
By consolidating everything through one account, we could then put money on deposit relatively easily. We worked closely with our existing bank, whose relationship manager helped us navigate the transition and ensured transaction limits were adjusted to accommodate the larger sums flowing through the central account.
The real difference came when we opened an additional instant saver account with a different bank, offering significantly better interest rates while maintaining the flexibility needed for education funding cycles.
We now move money into this saving account once the DfE funding comes in at the beginning of the month and keep it there until we need it for payments. This means that for most of the month, we're getting a reasonable rate on funds that would otherwise be earning nothing.
Technology enablers
Critical to the success of this transformation was the trust's simultaneous upgrade of our accounting system.
We have moved from individual installations to a centralised system that could handle consolidated banking. We were at the right time in the right place to make that change. Some accounting systems wouldn't support what we've done easily.
SEEAT also implemented automated sweep accounts with the bank. This means funds are automatically moved to higher-interest accounts at the end of each day, further optimising returns without additional administrative burden.
Quantifying success
The financial impact has been substantial. In the 2024-25 academic year, the trust generated £200,0002 in interest on their bank balances – equivalent to funding nearly three additional teachers*. Monthly returns from the saving account alone contribute around £10,000* a month.
When you equate this to almost three teachers, it becomes very real. I acknowledge the 2024-25 return was during a period when interest rates were more favourable and know that the same return may not always be possible every year, but this action will still generate income, that we were not getting under the old system.
This additional income has been reinvested directly into educational provision across all schools in the trust. The central nature of the income allows for strategic deployment of resources. The additional funding was directly reinvested into trust wide education support including leadership expertise for special educational needs assistance, and other pupil-focused resources across all trust schools at a time when such support is increasingly critical.
The process isn't without challenges – changing banks involves complex onboarding procedures that can take months, particularly around trustee verification; banks don’t always understand the education structures to obtain these.
However, the benefits extend well beyond financial returns. Our Head teachers are freed from routine banking administration, allowing them to focus on educational leadership. Central processes are stronger and more resilient. The trust has better oversight of cash flow across all schools.
For trusts considering similar changes, I recommend careful consideration of existing accounting systems and the timing of any consolidation. Would you upgrade your accounting system just to do this? It's expensive, but if you're already planning system changes, building in banking consolidation makes sense.
Looking forward
The trust continues to optimise its approach; we are currently working through the onboarding process with an alternative high street bank to access even better rates. While this involves significant preparation time – ensuring payroll systems can interface with new banking platforms and managing the transition of direct debits – the potential returns justify the investment.
I’ve shared our approach with other academy trusts through the Essex Academies Business Manager Network, helping spread best practice across the region.
For school leaders wrestling with similar challenges around resource optimisation, I believe our approach demonstrates that strategic thinking about seemingly mundane banking arrangements can yield significant benefits for both operational efficiency and educational provision.
Ready to find out more? Visit the DfE's Buying for Schools page to explore the savings platform and banking comparison tool. It costs nothing to take a look, and it could be the best financial decision you make for your school this year.
Any savings, benefits and outcomes described in this case study were provided by Inspire Education Community Trust and reflect its specific experience and circumstances. Individual results will vary between schools and trusts.
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