Interest earning accounts for clubs.

ses6jwg

They don't offer high rates on savings accounts for clubs or charities because a charity is not likely to take out a mortgage, or home insurance, or a credit card, or travel insurance are they?

Many high street banks offer higher rates on savings as "loss leaders" i.e. to get customers through the door or on the telephone. A certain percentage of those savings customers will go on on hold their current account, or take out a credit card, or their mortgage at some point in the future.

jennifernil

That sounds a more likely reason, than the "too much work for the bank" one! But of course it doesn't work with every customer.

Personally, I shop around for my own financial products. I have savings with whoever offers me the best rate, credit card with whoever offers me the best cashback or perks, and insurance with whoever offers me the best value. I don't have a mortgage any more, but when I did, I regularly remortgaged to get the best deal.

I'm sure there must be plenty of people doing likewise.

ses6jwg

jennifernil wrote: »

That sounds a more likely reason, than the "too much work for the bank" one! But of course it doesn't work with every customer.

Personally, I shop around for my own financial products. I have savings with whoever offers me the best rate, credit card with whoever offers me the best cashback or perks, and insurance with whoever offers me the best value. I don't have a mortgage any more, but when I did, I regularly remortgaged to get the best deal.

I'm sure there must be plenty of people doing likewise.

Nope, very few in fact.

BML

ColinFishwick wrote: »

Its probably due to extra admin costs

http://www.thisismoney.co.uk/money/article-1585161/Banking-for-clubs-and-societies.html

Many thanks for the Web Page where I found a mass of possible contacts for banks that do club accounts.

BML

rb10 wrote: »

CAF Bank and Unity Trust bank are both good ... but not sure if you have to be a registered/exempt/excepted charity to apply.

Many thanks for the information on CAF Bank and Unity Trust bank whom I have contacted and now waite to see what they offer.

BML

opinions4u wrote: »

1.60% with 7 days notice.

1.25% with easy access.

http://www.scottishwidows.co.uk/bank/savings/club_association_interest_rates.html

Many thanks for the above that I found when I allowed to get up today from a dodgy chest. They don't appear to do business by E-Mail and as I'm extremely hard of hearing I don’t use the telephone. I'm also too tight to want to do business by an ever increasing postal service but I hope that they do reply to the message that I sent via their comments facility.

Ifts

If you can afford to lock the money away for 12 months, then you can Open a Charity fixed term/fixed rate account with the Yorkshire Bank paying 2.7% fixed for 12 months BUT minimum deposit is £25K!

BML

Ifts wrote: »

If you can afford to lock the money away for 12 months, then you can Open a Charity fixed term/fixed rate account with the Yorkshire Bank paying 2.7% fixed for 12 months BUT minimum deposit is £25K!

Many thanks for that. The problem is that the club has had a steadily reducing membership which shows a reduction from 1,500 members ten years ago to about 350 at last year’s count and I suspect that is happening to many clubs. This means that we only have about £10,000.00 in the bank.

I have spent the last few days communicating to a number of banks and Building Societies but it has been hard work. Firstly, most of them do not offer an E-Mail connection requiring you to use the telephone and as I am extreemly hard of hearing that is a problem. I expect is because they think they have a better chance to sell whatever it is they want to sell and its not because of security because the information that I’m asking for is in the public domain.
I found ways of getting a question into their system even if it means using their job application system. So far that has only generated replies that say something like, “This department does not hold the information that you request and will you please telephone etc etc.”
I reply saying, “Please stop passing the buck and do what any modern organisation should do which is to take ownership of this matter even if it means actually looking for an answer yourself.”
I hope by the end of this week that I will have been able to pull together a list of what is on offer to clubs and I will then post it.