Charities frequently face obstacles when it comes to getting a good interest rate on their savings. At Fair Investment we’re working with leading high street and private banks to bring you better interest rates on your charity's savings. Read on for a selection of the best charity savings accounts currently available.*
Latest easy access account deals
If you don’t want to tie up charity funds for too long in case they’re needed urgently, a easy access account might be worth considering. If you’re likely to need access to funds quickly, or you’re starting out with a small deposit, Scottish Widows currently offers a Charity Deposit Account which requires a seven-day notice period required. You have the potential to earn up to 0.75% gross/AER, with deposits from £500 to £5 million. If you’re happy to give more notice, Cater Allen offers a 30-day Asset 30 Account which pays 1.35% gross AER.
Latest notice account deals
For those who are able to tie up charity funds for longer periods, it’s possible to get a relatively higher interest rate. Gilliat Financial Solutions offers a 180-day notice account for those depositing over £50,000 which offers 1.51% gross/AER variable with interest paid monthly. For charities needed more flexible access, the Manchester Building Society Business Savings Tracker offers a 45-day notice account, available to registered charities, which guarantees interest 1.25% above the Bank of England Base rate. Deposits start from £10.000.
Latest fixed rate bond deals
For those looking to save for a longer period of time, or who prefer traditional fixed term deposit accounts, there are terms available starting from as little as nine months. The 9 Month Bond for Charities from Principality offers 1.05% gross AER, fixed for the duration of the plan, and is exclusive to Fair Investment. The interest is paid at maturity on deposits ranging from £10,000 to £5 million.
Cater Allen’s 3 Year Fixed Term Deposit for charities offers a relatively high rate of 2.40% gross AER fixed for three years, so if you are in a position to tie up funds for this period, you may want to consider this option. Charities will need a minimum deposit of £50,000 to open an account.
Latest fixed rate bond alternatives
Those looking for long-term charity savings accounts might be interested in structured deposit plans, which provide an alternative to traditional fixed rate bonds. These accounts typically offer a three to six year term, and offer the potential for market-linked returns on your charity savings. Cater Allen offers a 3.75 Year Growth Plan which offers 100% x any rise of the FTSE up to 26%. For those prepared to invest for longer, the bank also offers an Annual Locked-in Return Plan, which offers capital protection for your charity’s savings with the added potential of up to a 6% annual returns dependent on FTSE 100 performance.
No news, feature or comment should be seen as a personal recommendation to invest. If you are in any doubt as to the suitability of a particular investment you should seek independent financial advice.
* Data accurate as of 01/02/2013.
© Fair Investment Company Ltd