Charities being ripped off by savings providers Go compare with our comparison table

Charities being ripped off by savings providers

17 May 2010 / by Rachel Mason

Charities are receiving some of the lowest savings rates on the market, according to financial service provider Fair Investment Company.

The firm says that while the average personal savings account is fairly poor paying out just 0.83%, charities are getting an even worse deal - just 0.45% on average.

"Charities really are getting a raw deal at the moment. The average rate for charities is less than half a percent, and even for those charities who can afford to fix, average rates are only 1.62%, "says James Caldwell, director of Fair Investment Company.

"Personal accounts are not great at the moment, but the average fixed is 3.05% which is still considerably better than what charities are getting."

James says that although charities can't do much about the rates on offer they can be savvy about which ones they choose.

"Although we obviously cannot force banks to start offering charities a better deal, we can at least source the best deals on the market, which is what we have done with our new charity savings comparison service, which compares leading charity savings accounts and offers up to 4% on fixed rates."

James says that "even the lowest rates" on the Fair Investment site are "more than three times the average" and urges charities to take a look at some of the deals on offer.

 "Many charities may not even realise how poor a deal they are getting on their savings, and many who are aware that their current savings solution is less than adequate may not know what to do about it, and that's where we can help."

Compare charity savings accounts »

ProviderAccountInterest RateTermApply
0.55%Instant AccessMore Info >
Instant access account for - BUSINESS, CHARITIES, HOUSING ASSOCIATIONS, CLUBS & PARTNERSHIPS - Interest paid monthly or annually. Open to organisations with fewer than 250 employees and a turnover or assets of up to £45 million.
0.15%Instant AccessMore Info >
Earn 0.15% gross/AER on balances over £500. Telephone or Postal Account. £5 million maximum balance.