Hight interst account for charities

northern_fella

I am the chairman of a board running a local pre-school and we have been told by the local education advisor to move some of our cash into a high interest account as a contingency fund should the pre-school close down.

Ideally we would look to move £10,000 into the account and we may be willing to accept the money is 'locked' with 90 days notice required to get access to it.

We have been told that some banks often offer Charities a lower interest rate and therefore I am posting a request here if anyone can point us in the direction of a bank (ideally high street) that would offer us a good deal.

Thanks in advance for any help given.

Northern Fella

greenface

my only imput with bank account for registered charities is i used to be activly involved with a well run local charity and the fund manager used the co-op bank.It was his lifetime ambition to PROVE he always got the best return on any money deposited. (He used to have bits of carpet glued to the bottom of his slippers -save buying all that carpet!)

try your local co-op

northern_fella

Cool - many thanks for the tip.

PauliPauli

best no notice account with a really good rate for busiess and charaties I assume;http://www.northernrock.co.uk/savings/business-savings-accounts/others here:http://www.moneyfacts.co.uk/business/bestbuys/business-investment.aspxPauli

DocProc

Have a look at

http://www.cafonline.org/default.aspx?page=6894

To open an account you need:

• to be a not-for-profit organisation, or
• to be recognised as charitable under English law
• to have a minimum of £10,000 to invest

Put your surplus funds to work in a CAF Fixed Rate Selector Account.

You have to commit to investing the funds for a set amount of time – but the reward is a competitive rate of interest that is fixed for the period you select.

It offers:

• a choice of fixed periods, from three months to three years.
• a fixed interest rate
• an account administered by Birmingham Midshires, a division of Halifax plc
• interest paid gross
• option to re-invest at maturity
• no set-up or management fees

Gordon_the_Moron

http://www.cafonline.org/default.aspx?page=7381

Lock the money up for 1 year you get 6.17%
Lock it up for 2 years you still get 6.17%
Lock it up for 3 years you get 6.14%

Am I missing something in the logic of this?

Da Moron

DocProc

Perhaps 'Yes'.

I think you possibly feel that if you tie the money up for a longer period then it should mean you get better rewarded. This would mean you get a higher rate of interest paid for committing for a longer period.

The point you might be missing is that perhaps rates can fluctuate during that longer period and if they do they can go either up or down.

If we knew they were actually going to come down quite a bit, then their interest rates offered for the longer period might actually be a very, very good deal.