Where should we put excess charity cash?

daisy164

Hi there

I work for a small charity and we have built up rather a large sum of money in our current account with the Bank of Scotland, around £120,000 with £9k sitting in a deposit account with them. We didn't earn any interest on the main balance last month and a measly 7p on the smaller amount.

Could anybody advise where we should put this excess cash? We would be looking to deposit approx £75k of it wherever we can get the best return and at no period longer than 3 months.

Also, can you deposit business / charity cash into a bog standard savings account or can they only be used by individuals?

Thanks for any advice, gratefully accepted.

Regards

greenface

Instead of it just sitting there why not use it for the charitable causes i though it would be used when i put my pound in the box.
Just a thought

daisy164

Good point! I'd better clarify this as I totally agree with you!

The charity is for the advancement of science, art and literature in the Midlands and we have earnt the money through hiring out the rooms in our grade II listed building, not by accepting donations. The building needs hundreds of thousands spent on it so we have a long way to go. The charity was formed hundreds of years ago.

Not a charity in the true sense of the word otherwise I would do what you suggest!

Robert_Sterling_3

Thank you for that explanation.

rb10

This is hardly unusual, plenty of charities have vast amounts of cash, because, similar to the OP's, they are having to save up for a large and costly project.

You will find that most normal savings accounts will have a condition that says they are for "personal customers only". You are not allowed to put your charity's money in one of these accounts.

Have you posted on the Charities Board on here? There are people on there who know a lot about saving for charities.

oramgepekoe

daisy164 wrote: »

Hi there

I work for a small charity and we have built up rather a large sum of money in our current account with the Bank of Scotland, around £120,000 with £9k sitting in a deposit account with them. We didn't earn any interest on the main balance last month and a measly 7p on the smaller amount.

Could anybody advise where we should put this excess cash? We would be looking to deposit approx £75k of it wherever we can get the best return and at no period longer than 3 months.

Also, can you deposit business / charity cash into a bog standard savings account or can they only be used by individuals?

Thanks for any advice, gratefully accepted.

Regards

Your easiest option is to ask the Bank of Scotland Treasury / Money Market department to give you an interest rate for a 3 month deposit. See 'Cash Instruments' towards the bottom of this page.
http://www.hbosplc.com/treasury/Money%20Markets%20Customers%20TOC.asp



If you are a registered charity then maybe look at moving your accounts to CAFBank, the charity bank. They give interest on current accounts plus have deposit accounts and fixed term accounts from 3 months. Cash and cheques can be paid in over the counter of any HSBC bank.
http://www.cafonline.org/Default.aspx?page=6880

rb10

oramgepekoe wrote: »

If you are a registered charity then maybe look at moving your accounts to CAFBank, the charity bank. They give interest on current accounts plus have deposit accounts and fixed term accounts from 3 months. Cash and cheques can be paid in over the counter of any HSBC bank.
http://www.cafonline.org/Default.aspx?page=6880

Do HSBC charge for that? As far as I know, the payments go through the Bank Giro Credit system, for which they usually will charge. Is there an exception, as it's for a charity account?

martinman3

I can recommend the Harpenden Building Society Premier Business account which can be opened by a charity, interest rate currently 3.0% AER, expecting a reduction soon.
http://www.harpendenbs.co.uk/business-notice.asp
Instant access, min £5000 balance with free withdrawals by cheque or BACS up to 25 times in a year, charges if more than that. Operate it by post if you are not near Harpenden. For some reason it does not show up in searches for business deposit accounts on Moneyfacts.