Best Charity Savings Rates June 2014

Fair Investment Company is committed to helping charities overcome the obstacles that they frequently face when it comes to getting a good interest rate on their savings. To help you choose the best charity savings account, take a look at our selection of the best charity savings deals for June 2014.*

Latest charity notice account deals

An easy access charity savings account could be a suitable option if you are looking for flexible access to your charity funds. The Scottish Widows Charity Deposit Account offers instant access with no withdrawal penalties. The account requires a minimum deposit of £500 and allows a maximum balance of £5,000,000 with an interest rate of up to 0.40% gross/AER.

If you are prepared to give 60 days’ notice on withdrawals you may be able to get better  give some notice of withdrawal, the Cater Allen Asset 30 account offers a rate of 0.65% gross/AER 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

F you are prepared to tie up your charity savings for a little longer, you could benefit from a higher rate of interest. Cater Allen leads our selection of charity fixed rates for June, with a 3 year fixed term deposit account paying 1.70% gross/AER. Deposits are guaranteed by Santander UK PLC and the minimum deposit is £50,000.

For those with a lower initial deposit who still want a three year fix for their charity savings, the Scottish Widows 3 year fixed term deposit account allows deposits from £10,000 and pays 1.50% AER/gross. Interest can be paid monthly, quarterly or annually, depending on your preference.

Click here to compare other charity fixed rate bonds >>

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, then structured deposit plans – which provide an alternative to traditional fixed rate bonds – may be an option to think about. This type of savings plan offers the potential for market-linked returns, while protecting your capital.

For income seekers, the Investec Target Income Deposit Plan is a 6 year structured deposit plan that offers a potential yearly income of 4.4% provided that the FTSE 100 finished above 90% of its starting value. Growth in the Index is measured by comparing the Final Index Level to the Initial Index Level. If, at maturity, the Final Index Level is equal to or lower than 90% of the Initial Index Level you will not receive a return, but your original capital will be repaid.

For those seeking growth from their charity savings, the Investec 5 Year Deposit Plus Plan offers a potential return of 26% gross, or 100% of any growth in the FSTE 100 index if higher. 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 25/06/2014.


Written by Editorial Team ,
23rd June 2014