If you're looking at charity savings accounts, you may not be too impressed by the interest rates on offer now. As a result, your charity's hard-won funds may only be earning a pittance… but it doesn't have to be that way!
While well-known banks and building societies don't tend to offer the very best rates on the market, there are other providers to choose from. As a trustee, you will need to be prepared to shop around to find the best charity savings rates.
If you take the time to look, there are several higher-paying accounts available to charities, with the majority being offered by smaller, lesser-known providers.
The best rates on charity deposit accounts will be paid when your organisation can commit to not having immediate or near-term access to its funds. As in the personal savings account sector, notice and fixed rate accounts offer higher rates than accounts allowing easy access.
As with any kind of savings account, you’ll need to compare the options thoroughly and ensure you’re getting the deal that meets your organisation’s needs. Make a point to check things like notice periods – are you willing to give a few months’ notice to access your funds, or would you prefer a more accessible easy access account? You may even have a lump sum that you don’t mind losing access to for a year or more, in which case a fixed rate bond might be more appropriate.
Other things you’ll need to bear in mind include account management options – would online management be suitable, or would you rather manage the account in a branch? – when interest is paid, whether you can add to the balance and any withdrawal restrictions or penalties.
If you don’t meet the criteria and are looking for an alternative place to save funds, why not look at business deposit accounts instead?
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.