Written by Isabel Buxton
17th December 2013

Latest charity savings account rates

Charities frequently face obstacles when it comes to getting a good interest rate on their savings. 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 latest charity saving accounts available in December 2013*

Latest easy access account deals

An easy access charity savings account could be a suitable option if you are looking for flexible access to your 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 £5million with an interest rate of up to 0.40% gross AER.

Latest notice account deals

If you are prepared to opt a for a longer notice period, you may be able to gain potentially higher interest rate on your charity savings. 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

For those with at least £10,000 to deposit, Scottish Widows offers a 3 year fixed term deposit account that pays 1.50% AER/gross. Cater Allen, meanwhile, offers charity customers a range of fixed term accounts ranging from 1 to 3 years in duration. The 1, 2 and 3 year fixed rate accounts pay interest of 130% AER/gross, 1.70% AER/gross and 1.95% AER /gross respectively, and are open for deposits of £50,000 and above.

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 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.

For those looking for a longer term plan, the Legal & General 6 Year Growth Deposit Bond offers 200% x any FTSE 100 growth, capped at 35%. It has a low minimum deposit of £500 and is capital protected. However, returns are not guaranteed and 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 16/12/2013.