# Make sure your cash is safe

- Link: https://fundraising.co.uk/2008/11/28/make-sure-your-cash-safe/
- Published: 2008-11-28T10:55:17+00:00
- Author: Howard Lake

Smaller UK charities should be seeking to protect their reserves in these uncertain
times. Deposits of up to £50,000 are protected under the Financial Services Compensation
Scheme – meaning you can claim compensation if the bank you have placed money with
goes bust.

The Autumn 2008 newsletter from the Charity Commission included the following advice:

‘The information provided by the FSCS about the Scheme does not specifically mention
charities. However, it appears that charities are covered by the Scheme to the same
extent as other organisations and individuals.

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The FSA Handbook of rules and guidance sets out which claims will not be eligible
for compensation. Many charities should be eligible to claim compensation but there
appear to be a number of important exceptions. In the Commission’s view, the exceptions
that are most likely to include charities are:

a company which has two or more of the following:

more than £6.5 million turnover;

more than £3.26 million balance sheet total;

more than 50 employees.

an unincorporated association which has assets of more than £1.4 million;

collective investment funds (these would include common investment funds).

If charities want more information about the FSCS, or wish to submit a claim, they
should contact the FSCS directly at:

Website: www.fscs.org.uk

Customer Services Team: 020 7892 7300′

Charities with reserves in excess of £50,000 would do well to spread their funds
around several banks to minimise risk. The days of great interest rates are over
and security should now be the watchword. Some of the options we’ve been looking
at recently are:

CAF Gold Account – paying 3.64% AER

Cater Allen – Reserve Account for Charities 2.68%AER

HSBC Business High Interest 2.63% AER

Triodos 1.85% AER

Triodos (a Dutch bank) is covered by a Dutch scheme which provides compensation 
up to Euro 100,000.

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