Charity Savings Accounts Compared
Charity Savings accounts are provided by regulated banks and building societies in the UK and come in various forms ranging from no notice accounts to short term notice deposit accounts typically 7 day, 30 day, 60 day or 90 day through to longer term deposit savings accounts. Some providers also offer longer term savings accounts( often called charity fixed rate bonds) which typically range from 12 months to 60 months notice. With a charity savings account the charity can benefit from interest being added either monthly, quarterly or annually depending on the Provider terms. Interest can often be paid to a nominated bank account. Typically the longer the charity can lock away money the better the interest rate that can be achieved.
See below for a guide to charity savings accounts for UK charities.
Type of Charity Savings Account |
Charity Savings Account Features |
Charity Savings Account Access |
Charity Savings No Notice Accounts |
Will normally offer higher interest than what can be obtained on a charity current account. |
Instant access or easy access |
Charity Savings Notice Accounts |
With these types of charity savings account you have to give notice before you can take money out e.g. 7 day, 30 day, 60 day and 90 days. |
An interest penalty will often be applied if notice is not given. |
Charity Savings Fixed Rate Bonds |
Ranging from 1, 2, 3, 4 or 5 year saving terms with a minimum deposit. |
Designed for money to be held for full term. Early withdrawal may result in a penalty. |
Charity Structured Deposit Plans |
Usually 3, 4 or 5 year charity saving terms with a minimum deposit. |
Early withdrawal may result in a penalty. Designed for money to be held for full term |
Features to look out for when choosing a Charity Savings Account
There is a wide range of charity savings account deals to choose from so we have highlighted some of the features to look out for:
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Charity minimum deposit – Some charity savings accounts require a minimum level of funding. Typically providers will pay a higher level of interest for higher deposits.
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Charity Savings Access – Depending on the charity savings account access will be through the branch, online telephone or post. Restrictions may apply. Some accounts are only available to charities based in a local areas or regions. Restrictions may apply to certain savings accounts depending on charity turnover
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Charity Savings Interest – Some charity savings account providers will pay interest monthly and others quarterly or annually. Depending on the account some providers can pay interest to a nominated account.
With interest rates at the time of writing at an all-time low the impact in real terms of inflation on your money is not to be underestimated in eroding the buying power a charities cash on deposit. Our research shows that many charity savings accounts offer poor value and there can be significant differences on what interest is paid from one account provider to the next. Use our charity savings comparison tables to ensure you get a good savings rate.