Is your school's money working as hard as it should?

Chris McGunnigle, DfE Banking Team Lead, returns with an update to his November 2025 blog. New tools are live, real results are coming in, and the question every school should be asking their bank has never been more important.

Please note: DfE does not recommend specific banks or give financial advice. Always get independent advice before making changes.

What's new?

We have a free tool called the Banking Comparison Tool. You can find it on GOV.UK Get Help Buying for Schools. It shows you how your bank's interest rates compare to what else is available. You don't have to switch banks or change anything straight away. It's just a way to help you ask better questions and benchmark what you’re getting.

Since we launched the tool, over 160 schools and trusts have used it and 73 of them have come back to use it more than once. Schools using it, alongside a range of savings products, are now achieving an overall average interest rate of 3.8%. That's a big step up from the less than 1% many schools were earning before.

We've also added Insignis, a new savings platform, to our guidance. Platforms like this make it easier to access accounts across multiple banks without filling in separate forms for each one. Over £1 billion has already been placed through Insignis by schools and trusts. As an introductory offer, Insignis has reduced its standard fees for the first year. It's always worth checking the costs before signing up.

What can your school do?

You don't have to switch banks to earn more. Banks and building societies can advise on a range of options depending on when you need access to your money:

Instant access savings: keep your money available while earning more than a current account Notice accounts: earn a higher return by giving advance notice (usually 32 days or more) before you withdraw Fixed-term deposits: set money aside for a fixed period and receive a guaranteed rate of interest in return

A savings platform can also make it easier to spread money across different accounts at different rates, so your cash is always there when you need it.

Is your money safe?

Many schools ask this question. If your school keeps all its money in one bank, only some of it is protected if that bank fails. Many schools and trusts will be protected under the FSCS scheme up to £120,000 per financial institution. You can use the FSCS Bank and Savings Protection Checker to find out more. If in doubt contact your bank directly.

Your school or trust should also have a written plan for how it looks after its money.  It should say which banks you use and how you manage risk. If you don’t have one, now is a good time to write one.

What other schools have done

Three real examples show what’s possible. Northern Education Trust was earning between £10,000 and £20,000 a year in interest. They asked their bank to link all their accounts together, something called credit balance aggregation. They didn't move any money. Now they earn around £100,000 every month.

Bishop Hogarth Catholic Education Trust went from earning £16,000 a year to over £1 million in just one year. Their finance lead says the free comparison tool is "particularly helpful for schools at the start of this journey."

South East Essex Academy Trust reduced the number of people involved in monthly payroll from 16 to just two. They also set accounts up so money moves automatically to a higher interest account at the end of each day. In one year, they earned around £200,000 extra. Their CFO said: "When you equate this to almost three teachers, it becomes very real." That money went straight into support for pupils with special educational needs.

What good governance looks like

All three trusts involved their directors and trustees early on. They gave them time to ask questions.  In some cases, getting approval took four to five months. But trustees felt confident by the time they said yes.

When reviewing your banking, think about:

writing or updating your plan for looking after money setting clear rules about which banks you'll use reporting regularly to your Finance Committee, Trustees, Governors etc. planning when money comes in and goes out, so you know when it's free to save

Be ready for some administration. Sometimes, setting up new accounts can take a while, but every trust we've spoken to says it was worth it.

How to get started

Start by asking your bank one simple question: "Is this the best rate you can give me?"

Then:

use the free Banking Comparison Tool on Get Help Buying for Schools check your written money management plans, or write one if you don't have it use the FSCS Bank and Savings Protection Checker to see how much of your money is protected ask your bank about ways to earn more interest on the money you already have think about whether a savings platform could save you time, and check the fees first

Every pound your school earns is a pound you can spend on children. Head to Get Help Buying for Schools to use the free Banking Comparison Tool today.

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https://buyingforschools.blog.gov.uk/2026/06/05/is-your-schools-money-working-as-hard-as-it-should/

seen at 10:37, 5 June in Buying for Schools.