Best Charity Savings Accounts for March 2013
Fair Investment Company is committed to helping charities get the best interest rates on their savings. See below for our selection of some of the best charity saving accounts available in March 2014.*
Latest notice account deals
If you want to be able to access your charity savings at fairly short notice, the Cater Allen Asset 30 account offers a rate of 0.65% AER/gross with a notice period of 30 days. The minimum deposit for this account in £5,000, with monthly interest payments, and deposits are guaranteed by Santander.
Latest fixed rate bond deals
The Cater Allen 3 year fixed term deposit plan offers 1.90% AER/gross fixed for three years, for those who are able to tie up their charity savings for longer. This account is also offered by Cater Allen as a 1 year or 2 year fixed rate, with the former paying 1.30% AER/gross and the latter paying 1.90% AER/gross. These accounts require a minimum deposit of £50,000.
For those with lower sums to deposits, the Scottish Widows 3 year fixed term deposit account pays 1.50% AER/gross with a lower minimum of £10,000.
AER – Stands for the Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. (As every advertisement for a savings product which quotes an interest rate will contain an AER, you will be able to compare more easily what return you can expect from your savings over time)
Latest fixed rate bond alternatives for charities
If you’ve considered fixed rates in the past for your charity savings, you may be interested in the latest structured deposit plans, which provide an alternative to traditional fixed rate bonds. This type of savings plan offers the potential for market-linked returns, while protecting your capital at the same time.
The Gilliat Deposit Kick Out plan offers the opportunity to mature early, or ‘kick out’ at the end of years 2, 3, 4 or 5, with a maximum duration of 6 years. Potential returns are linked to the performance of five FTSE 100 stock market listed companies. If, on any yearly Observation Date from years 2 to 5, the levels of all five shares are at or above their respective initial levels, the plan will mature early. This means you will receive a return of your original capital plus 7.5% for each year the plan has been active. If one or more shares are below their initial levels then the plan will continue until the next Observation Date. If, on the final Observation Date, the levels of all five shares are at least 90% of their initial levels, the plan will return 45% gross. If the level of one or more shares is below 90% of their initial levels at the final Observation Date, then you will not receive a return, but you will get your initial capital back in full.
The Investec 3 Year Deposit plan offers a target return of 13% after 3 years, provided that the Final Index Level (subject to averaging) is higher than the Initial Index Level. If, at maturity, the Final Index Level is equal to or lower than the Initial Index Level, you will not receive a return but your original capital will be repaid.
Structured deposit plans are capital protected. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In this event you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS), depending on your individual circumstances. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term. The returns from structured deposits are not guaranteed. The past performance of the FTSE 100 Index and any companies listed on the FTSE 100 Index is not a guide to future 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 03/03/2014.