nigel woollsey

Nigel Woollsey

Online Writer
Published: 06/03/2019

At a glance

  • Higher savings balances can earn better rates of interest.
  • Fixed savings bonds and notice accounts can offer higher interest rates for money your charity doesn’t need short term access to.

Charity and club accounts explained

Probably the first and most important consideration is how much access your organisation will need to the money. Will it be needed at a set date? Or will you potentially need to access funds at short or no notice?

As with regular savings accounts, the longer your charity or club can afford to not have access to its money, the higher the rate of interest you may be able to earn.

Interest rates can also be improved with a higher savings balance. Often charity savings accounts offer higher rates, the more money you have invested in the account.

Depositor protection for charities

Charity and club savings accounts may fall under the protection of the FSCS. Whether your charity or club is eligible will depend on how it is constituted (it’s not enough for a charity to be registered).

If your charity is constituted as an unincorporated association, it would be eligible for compensation if the deposit taker fails. If it is a limited company, it would be covered if it meets the following:

  • A Partnership
  • A Limited Company
  • Unincorporated Association or mutual association 
  • An annual turnover of less than £1 million

Moneyfacts tip

Moneyfacts tip nigel woollsey

The FSCS protects the first £75,000 an eligible charity or club has held under a single UK banking licence. Some banks and building societies share a licence, so it’s best to spread money between institutions to make sure it’s protected.

Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

group of people in volunteer t-shirts

At a glance

  • Higher savings balances can earn better rates of interest.
  • Fixed savings bonds and notice accounts can offer higher interest rates for money your charity doesn’t need short term access to.

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