For most French people, banking is synonymous with constraint, however banks are essential to the development of your organization and in particular your association. As a result, it is essential to select the best banking institution(s) in order to compare them, and to know who will listen to you and respond to your requests with banking products.
From this point on, it is interesting to take into account the right criteria that will allow you to make the best choice and choose a bank that suits you. Through this article we will help you make the best choice and establish a comparison of banks.
We’ll cover:
- What are the intentions of setting up an association bank account?
- The different questions to ask yourself before your final choice
- A choice for a neobank or a traditional bank?
- Finally, we will give you some suggestions
What are the intentions of setting up an association bank account?
A bank account for an association is not mandatory
Of course, it is not an obligation, but a law on the contract of association has been in force in parliament since 1901. This right was proposed by Pierre Waldeck Rousseau and allows any French person to benefit from the right to associate.
Thanks to this adoption, many associations were created, however within this law it was stipulated that the right to associate must be accompanied by the right to open a bank account.
Opening an account is a right, not an obligation. If this right of opening is implemented, you will be able to benefit from advantages for your association.
Dissociate your associative and personal actions
Initially, opening an account simply for your associative activity will simplify your management. You will see your associative actions and your personal operations in a much more readable way. In a second step, you will have the possibility, for example, to let your treasurer analyze the accounts without being able to see your personal purchases. In addition, during the audit of public finances, having unlinked your two accounts, your personal transactions will not be visible, which is beneficial for you!
Simplified payment methods
Opening your association account will make it easier for your treasurer, because payment methods will be at his disposal to avoid repetitive expense reports. For example: payment of salaries, collection of donations, contributions, etc. These operations will be secure, efficient and simple.
Collecting financial aid paid by the State
The association account needs financial aid such as aid paid by the State (subsidies, donations, etc.) It is therefore necessary to benefit from these aids for the operation of your association, they constitute their main sources of financing.
This aid can be material, intangible or financial, i.e. an association declared and registered with the SIRENE will be required to benefit from it. However, the associations will have to meet obligations to be subsidized.
For example: financial statements, a presentation of the grant agreement, a presentation of the annual accounts, financial controls. These obligations can be constraints if you do not have a dedicated account.
Optimising your financial assets
If you open a dedicated account, if you have financial surpluses, the account will allow you to grow your capital via financial products such as the Livret A, socially responsible investment (SRI) or UCITS.
The different questions to ask yourself before your final choice
Not all banks meet your needs. This is why you need to find the best bank in which the maximum of your needs are present. Choosing your bank according to your needs requires reflection. Compare the pros and cons before choosing. You will have to examine the different offers, the different services offered before going to a bank branch, in order to properly meet your different expectations.
Organize a meeting with your employees to make a list of banking services and everything you want to see in your future bank.
Below you will find questions that would be essential to ask:
- How often will we shop? How are we going to pay them? Do we need one payment card or several bank cards?
- Should a dedicated savings account be set up for the association in the event of cash surpluses?
- Will our accounting tool correspond with our future bank?
Please note that the association’s bank account will necessarily be under the name of the association and not of the treasurer or other employees. Indeed, your association has the status of a legal person, in other words the association exists outside the people who operate it. Therefore, before the law, your liability as a legal person will be both civil and criminal.
Your association may be represented by what are called “delegates”, employees. These “delegates” will have the possibility of using the bank account.
We will also have to define the means of collection and the means of payment. Banks nowadays offer innovative and easy-to-use financial transfer systems, for example: direct online payment, transfers, cheque deposits. There are a wide range of choices available to you, and the choice is yours now!
We advise you to also think about the geolocation criterion. The benefit will be felt by the treasurer, for example in the event of a cheque deposit, if he is close to the bank, he can easily go there.
Finally, the price is a very important criterion. Most association groups want to pay less for the offers. As you know, opening an account, taking advantage of financial products or choosing means of transactions costs money. This is why you will need to establish a budget that you want to respect.
On the French bank market you will find all the prices. However, two types of banks can be grouped together in terms of prices. On the one hand, there are the so-called traditional banks and on the other the neobanks. Unlike traditional banks, neobanks are less expensive but also less rich in terms of offers.
There are also financing options such as insurance benefits or associative packs.
A choice for a neobank or a traditional bank?
The particularities of neobanks
There are several interests that could direct you to this type of bank. First of all, they are easy to use and quick to execute. If you want to save time, this is the one for you. The creation of your account is 100% digitized and so efficient that you will spend only a few minutes on it.
As we mentioned earlier, the main interest of these banks is their price. Indeed, the cost on average is 4 to 5 times less expensive than a traditional bank. Neobanks will offer you free bank cards, during your operations there will be no additional costs, the same for foreign currency transactions, you will save money. Customer relationship management is more operational as well as their website in terms of handling compared to traditional banks.
Despite this, these banks have loopholes, and caps are often put on certain offers. There are quotas for withdrawals, transfers, free transfers and in some banks they do not offer checkbooks.
They are limited in terms of their financing offers. This is the case if your treasurer works on your cash surpluses, he will not have the same level of offer as in a traditional bank.
There are more and more neobanks, here are some examples: Hello bank, Nickel, Anytime, N 26, Qonto, Vivid.
The particularities of traditional banks
Traditional banks arrived before neobanks, so their spread is more intense. In our cities, they are part of our landscape. This omnipresence puts them in the spotlight and can increase their visibility. Indeed, this physical presence can reassure some people who prefer human contact and need to see their advisor. Most of these are large banks that set up a personal follow-up relationship with a bank advisor.
Of course, they ensure your follow-up, but pay attention to the many offers they can offer you, often for a fee.
Indeed, by offering a multitude of investment solutions or services, you can hide hidden fees or multiply account maintenance fees.
If your association takes care of the services perfectly, a traditional bank will be a real asset for the management of your organization. As we have seen previously, associative packs can be offered to manage your financing, these are services related to the current account.
For collecting donations or collecting dues, special ways can simplify your financial operations.
There are also disadvantages in using a traditional bank. Regarding customer relationship management, it could be reviewed because the response time seems to be longer than with neobanks.
Finally, they do not slash their prices and therefore avoid the competitive spirit with neobanks that are revolutionizing the world of traditional financing.
Here are some examples of traditional banks: Banque Postale, Crédit Mutuel, Caisse d’Epargne, Banque Populaire, Monabanq
To go further, find a selection of online banks and traditional banks for associations in this article which helps you make your choice among the best banks for associations.
Our suggestions for your future choice
Negotiate prices
Bankers are aware of the obstacles and expectations of the associative world, particularly in terms of financing. In addition, bankers make significant margins, so you will have to argue your request, make them aware of your discourse. You will then be able to benefit from financial advantages during the negotiation.
List all the essential points you need to address and prepare your objections, for example you can talk about the competitors’ pricing policy.
Another negotiation suggestion, if you are already a customer at the bank you are negotiating with, talk to them about your status within the bank to haggle.
Also, see with your treasurer if the site’s internet interface is easy to use and will allow him to analyze accounting and financial operations. You need a good management interface, you can analyze this directly upstream.
Control Hidden Fees
Before choosing, you need to make a bank comparison, so you need to analyze and control the hidden fees to avoid much too high fees at the end of the month. Indeed, many banks do not explicitly indicate certain fees.
It is also important to mention when trading the authorized overdraft rate, closing fees, chargeback fees, foreign exchange fees, etc.
The creation of an association bank account, the documents that must be provided
It’s okay you decide and you’ve made your choice, now you’ll have to give the essential supporting documents for the creation of the account.
Here they are:
- The minutes of the deliberation designating the person or persons responsible for the account, with a copy of the identity documents of the representative(s);
- The signed and up-to-date statutes of the association;
- An extract from the official publication journal of the association and corporate foundations (JOAFE);
- The receipt of the association’s declaration to the prefecture;
- The list of your team members;
- Proof of address from your association (invoice, lease, property tax, etc.).
In summary
Is opening an associative bank account really profitable?
The creation of a bank account for an association is not an obligation but a right. Nevertheless, its opening will offer you significant positive aspects. The first question to ask yourself is whether you want to dissociate your personal account from your association account? Will we also have to know the disparities between traditional banks and neobanks?
They each have their own particularities and have both advantages and disadvantages.
You will have to negotiate with different banks to find out which one will suit you best. Indeed, it is a process that requires time because many elements must be taken into account.
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