Best Charity Savings Rates October 2014

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 October 2014.*

Latest notice account deals

If you want to be able to access your charity savings at fairly short notice, the Manchester Building Society offers a 60 day notice Business Tracker account which promises an interest rate that will remain 0.65% above the bank of England Base Rate until 30th September 2015. The current rate on offer is 1.15% AER/gross and the account is open for deposits between £10,000 and £75,000.

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. The account requires a minimum deposit of £50,000 and deposits are guaranteed by Santander UK plc.

The Scottish Widows 3 year fixed term deposit account pays 1.50% AER/gross with a lower minimum of £10,000. Interest can be paid monthly, quarterly or annually, allowing you to choose the option that suits your charity finance requirements.

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 Morgan Stanley Digital Growth Deposit Plan 3 is a six year structured deposit plan linked to the performance of the FTSE 100 Index. The objective of the plan is to provide a full repayment of capital at the end of the six year term, plus a defined return of 30% provided that the Final Index Level is the same or higher than the Initial Index Level by any amount.  If, at maturity, the Final Index Level is lower than the Initial Index Level, you will not receive a return but your original capital will be repaid.

The Mariana Capital FTSE 5 Stock Deposit Kick Out Plan is a capital protected structured deposit plan with a maximum term of 6 years which offers s potential 7.2% annual return (not compounded), dependent on the performance of five FTSE 100 listed companies. The return on offer is not guaranteed, but is dependent on the performance of five shares listed on the FTSE 100 Index, whose values are taken at the start of the plan. If all five shares are at or above these values at the end of each year (from year 2 onwards), you will receive your initial deposit plus 7.2% for each year (not compounded). If one or more of the shares are lower at the end of every year, you will not receive any growth and only a return of your capital.

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 02/10/2014.

Written by Editorial Team ,
3rd October 2014