85 per cent of charities earn less interest than the Bank of England base rate.
Charity Bank, the ethical bank known for its loans to charities and social enterprises, is urging charities to review the interest paid on their savings.
The call to action comes in the light of recent research conducted by Third Sector and Flagstone, which found that 85 per cent of charities are earning less interest on their money than the Bank of England base rate of 0.5 per cent, with nearly a third earning less than 0.1 per cent interest.
With Charity Bank’s Ethical Easy Access Account offering a competitive rate of interest of 0.75 per cent gross/AER to charities looking for same-day access to their deposits, the bank is suggesting charities could make their money go further, whilst also ensuring their reserves are working for good.
Money saved with Charity Bank is used to provide loans to support the work of charities and social enterprises across the UK. Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme, the UK’s deposit guarantee scheme.
The research published in January also highlights that 58 per cent of charities are deterred from switching to other banks by the amount of time and paperwork involved. Charity Bank has recently introduced online applications across all its deposit products, including its Ethical Easy Access Account, thereby reducing the time taken to open an account.
Justin Hort, Head of Savings at Charity Bank, said: “It’s disheartening to think charities are not getting the best possible return on their savings. Applying for our Ethical Easy Access Account online is straightforward and if required members of our savings team are on hand to provide personal support. Because we use our savers’ money to fund loans to other social sector organisations, charities can ensure their reserves are working for good all the time whilst obtaining a competitive rate of interest.”
Since 2002, Charity Bank has provided over £200 million of loans to support organisations working to enrich and improve society.
For more information on Charity Bank’s new Ethical Easy Access Account see the table below, visit www.charitybank.org/eeaa or call 01732 441944.
Charity Bank Ethical Easy Access Account - Summary Box