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Saturday, December 16, 2017

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Do cash deposit accounts for charities offer good returns?

Martin Greenland | 14:08 Tuesday 5th December 2017

Cambridge & Counties Bank has found that many returns on cash deposit accounts for charities are offering extremely low returns

The specialist bank’s deposit accounts pay from 1.1% gross AER on deposits of £10,000 or more.

However a study carried out by Cambridge & Counties revealed that around 30% of other cash deposit accounts for charities are offering returns of 0.1% gross AER of less.

Around 13% offer less than 0.1% gross AER while less than 1% of deposit accounts open to charities are paying 1% gross AER or more.

One in four people (24%) intend to donate less to charity this year than in 2016, while only 12% plan to give more, according to the research.

Cambridge & Counties also revealed that nearly half (47%) will carry on donating around the same amount as last year.

When it came to the reason why they will donate less, 39% claimed it was because their disposable income has fallen, while 36% said it was due to the cost of living rising.

One in four (24%) claimed it was down to a change in other personal circumstances resulting in having less money.

“The cost of living for many people is rising and our research shows that for many this means they will be donating less to charities this year,” said Rachel Curtis-Bowen, chief customer office at Cambridge & Counties Bank.

“Charities rely heavily on donations and if they see a drop here, it could adversely affect the services and help they provide to millions of people.

“However, charities can offset the impact of any fall in donations by making sure that the interest rate they receive on their cash deposits is competitive, and if it’s not, they should be prepared to switch to a different provider or account.”

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