Charities 100% unhappy with savings account rates

Charities 100% unhappy with savings account rates

17 August 2010 / by Rachel Mason

- 100% of charities unhappy with their savings rate

- Average instant access rate just 0.29%

- Get rates of up to 4.15% with Fair Investment Company


Charities are wholeheartedly unhappy with the savings account rate being offered by their current provider.

According to a quick poll by Fair Investment Company, where 82 charities were asked if they were happy with their charity's savings account rate, all 82 answered 'no'.

This is a rise in 'unhappiness' from last month, when of those polled, 97 per cent said they were unhappy.  Now, it seems levels of satisfaction have plummeted even further - David Doulton, director of Fair Investment Company, says this is no real surprise.

"The average rate on an instant access charity savings account is currently just 0.29%, while on a three year fixed account; it is only 1.85%, so I am not at all surprised that all the charities polled said they are unhappy with their savings account rate.

"Yes, savings account rates are low for everyone at the moment, but it would seem that charities are getting a really bad deal. While the average personal account is paying 0.74%, the average charity savings account is even worse; it is not even beating the historically low base rate of 0.5%!

"Although there is nothing we can do to make the rates go up, we can help charities find the best rates available, which is why we have launched a charity savings comparison service," said David.

"We compare leading charity savings accounts and can offer up to 4.15% on fixed rates, up to 2.0% on notice accounts and up to 1.5% on easy access deposit accounts."
 
The 4.15% rate available through Fair Investment Company is The RBS Royal Deposit Plan 5. This is a three year fixed rate deposit plan that is only available through intermediaries like Fair Investment Company – RBS are not offering a direct deal.

David continues, "If your charity is receiving low interest - and with the averages so low, it probably is - it is worth taking a look at some of the deals we have. Our instant access rates are five times the average, while our best three year deal is more than double the average.

"We believe many charities are aware that their current savings solution is less than adequate but don’t know what to do about it – our new service provides them with the much needed tools required to help them make more from their money."

Ends
Poll question: 'Are you happy with your charity's savings account rate?'
82 charities polled July -August 2010, answers: Yes (0), No (82)
62 charities polled May- June 2010, answers: Yes (2), No (60)