Charity Savings Accounts Roundup – September 2013
Fair Investment Company is committed to helping charities get the best interest rates on their savings. Here we have put together a selection of the latest charity saving accounts currently available.*
Latest easy access account deals
For charities that are likely to require quick and easy access to their money at short notice, the Scottish Widows Charity Deposit Account offers instant access and with no withdrawal penalties. The account requires a minimum deposit of £500, with an interest rate of up to 0.40% gross AER.
Latest notice account deals
Opting for a longer notice period could mean potentially higher interest rates on your charity’s savings. The Cater Allen Asset 30 account offers a relatively short notice period of 30 days with a rate of 0.65% gross/AER. The minimum deposit for this account in £5,000, with monthly interest payments, and deposits are guaranteed by Santander.
Latest fixed rate bond deals
For those looking to save for a longer period of time, there are terms available ranging for one to three years. Cater Allen offers charities a choice of a 1, 2 or 3 year Fixed Term Deposit Plan, with rates of 1.30% AER/gross for the one year option, 1.60% AER/gross for two years and 1.80% AER/gross for the three year term. The minimum deposit for all three options is £50,000.
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
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 at the same time. The Investec Three Year Deposit plan offers a potential return of 12% after three years, with a low minimum deposit of £3,000. Returns are not guaranteed, and so you may only receive a return of your original 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 06/09/2013.