Trustees and competitive savings rates
New research suggests that 98% of charities are unhappy with the current deal they are getting on their cash deposits.
The research from Fair Investment Company found that charities are receiving an average of only 0.39% on their cash savings accounts.
Even at a time of historically low interest rates, this is clearly less than satisfactory for those responsible for managing cash at charities.
We often find that charities, trustees and business owners struggle to find competitive interest rates for the cash they hold. This is because these organisations are not able to access to the same accounts as those designed for retail savers.
Banks and building societies would probably argue that the reason for these lower rates is the additional complexities associated with opening and managing accounts for trustees, charities or corporations. These accounts often require multiple signatories and have additional customer identification requirements. It’s a reasonable argument.
If you are responsible for managing assets on behalf of a trust, charity or business, please do speak to us about some different ways to access more competitive interest rates than those you will be able to obtain directly.
By using our investment platform and relationships with private banks, we are often able to get access to retail savings accounts, with higher interest rates, for use by charities, trustees and businesses. We do this as part of a comprehensive review of your cash and investment strategy, with our ideal client having at least £200,000 to invest.
Photo credit: Flickr/Dave McLear