Disappointment for charities – 100% unhappy with providers' savings rates Go compare with our comparison table

Disappointment for charities – 100% unhappy with providers' savings rates

23 August 2010 / by Rachel Mason

All charities are unhappy with their current savings account rate, according to a new poll.

The poll, carried out by Fair Investment Company, asked 82 charities the question 'are you happy with your charity's savings rate', and the answer, an unreserved 'no'.

This is a three per cent increase on last month, when 97% of the charities polled said they were unhappy with their charity's savings rate.

According to Fair Investment Company, the average instant access charity savings account is offering interest of just 0.29%, which is 0.21% below the historically low 0.5% base rate, and this, says the firm, means it is not at all surprising that charities are unhappy with their savings deals.

David Doulton, who is director at Fair Investment Company, says although all savings rates are low, it seems charities are getting a particularly raw deal.

"Yes, savings account rates are low for everyone at the moment, but it would seem that charities are getting a really bad deal," he said.

"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%!

Mr Doulton says that although there is nothing much to be done about the fact that rates are, on a whole, fairly poor, charities should at least be able to ensure they are getting the best deals available.

"Although there is nothing we can do to make the rates go up, we have launched a charity savings accounts comparison service that can help charities find the best rates available

"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."

Fair Investment Company is one of a few intermediaries offering the 4.15% three year fixed rate RBS Royal Deposit Plan 5, which is not available directly from RBS and one of the highest deals on the market for charities.

David continues, "Our instant access rates are five times the average, while our best three year deal is more than double the average, so if your charity is getting a poor deal, use our service – it could help you get more from your money."

© Fair Investment Company Ltd

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.