# Time for charities to check interest rate on savings, urges Charity Bank

- Link: https://fundraising.co.uk/2018/02/07/time-charities-check-interest-rate-savings-urges-charity-bank/
- Published: 2018-02-07T11:28:52+00:00
- Author: Howard Lake

**Most charities are earning less interest than the Bank of England base rate, according
to research, so Charity Bank is encouraging all charities to review the interest
being paid on their savings.**

[Research conducted by Third Sector and Flagstone](https://www.thirdsector.co.uk/charities-earn-less-interest-money-base-rate/finance/article/1454992)
has found that 85% of the 194 charities surveyed are earning less interest on their
money than the Bank of England base rate of 0.5 per cent. In addition, nearly a 
third are earning less than 0.1% interest.

The ethical bank which lends to charities and social enterprises is not surprisingly
taking the opportunity to highlight its [Ethical Easy Access Account](http://www.charitybank.org/eeaa),
which offers 0.75% gross/AER to charities looking for same-day access to their deposits.

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Eligible deposits up to £85,000 are protected by the Financial Services Compensation
Scheme, the UK’s deposit guarantee scheme.

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… 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.”

## Barrier to switching account?

Why don’t more charities switch banks to find a better rate of interest? The research
published in January found that 58% of the charities surveyed are deterred from 
switching “by the amount of time and paperwork involved”.

Charity Bank, which has provided over £200 million of loans since 2002 to support
organisations working to improve society, points out that it has recently introduced
online applications across all its deposit products, to help make opening an account
even easier.

s

 * **[Charity Bank announces record loan growth & new campaign to reduce loan costs](https://fundraising.co.uk/2018/04/09/charity-bank-announces-record-loan-growth-new-campaign-reduce-loan-costs/)**(
   9 April 2018)
 * **[Charity Bank launches campaign to encourage using ethical providers](https://fundraising.co.uk/2018/09/17/charity-bank-launches-campaign-encourage-using-ethical-providers/)**(
   17 September 2018)
 * **[Charity Bank issues 1000th loan](https://fundraising.co.uk/2019/11/12/charity-bank-issues-1000th-loan/)**(
   12 November 2019)

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