Charities are getting a poor deal on their savings according to financial services provider, Fair Investment Company.
Charity savings accounts pay out just 0.38 per cent in interest on average compared to an average of 0.72 per cent on personal savings accounts, and, says Fair Investment Company, as charitable donations fell by 11 per cent last year, having a good savings rate is all the more important.
"Due to the effects of the credit crunch and the recession, money is tighter for a lot of people and they are obviously not able to give to charity in the same way they were," said the firm's director David Doulton," and it is exactly at these times, when their donation levels take a hit, that charities need to be earning as high an interest as possible on the money they do have."
David says that despite being 'bailed out' by the taxpayer, banks are not offering charities the same good will, with the average instant access account paying out 0.38 per cent, notice accounts paying 1.10 per cent and fixed rate, 1.68 per cent. This, again, is less than on personal fixed rate savings accounts which pay 3.18 per cent on average.
But, says David, just because these figures would suggest that there is really not much choice for charities looking for a better rate, there are some good deals out there, but says the main problem is that charities don't know where to look, which is why his company has launched a new service.
Rates on Fair Investment Company's new charity savings accounts service are as high as 4 per cent for a fixed rate account, with rates of up to 2.20 per cent on deposit accounts and notice accounts.
David concludes, "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 offers rates considerably higher than the average and provides charities with the much needed tools required to help them make more from their money."
© Fair Investment Company Ltd