Sports club funds

jonmp

Hi,
I am newly appointed treasurer to a sports club that currently has about £20K in the bank until we buy some new equipment. It is earning no real interest of course but I wondered if anyone knew of an account it could be parked in for about 6 months where it would get some interest.

Obviously the accounts that give good interest rates to regular savers or when D/Ds are set up are no good. Just a plain vanilla account giving 2.5% interest would be great if there was such a thing.

Thanks
Jon

bowlhead99

jonmp wrote: »

Just a plain vanilla account giving 2.5% interest would be great if there was such a thing.

There isn't. That's five times the base rate and more than double RPI inflation.

The only situations where banks are paying that level of interest are the ones for personal customers who use their current accounts as their 'main account' (or at least appear to, by meeting the terms and conditions on minimum monthly deposits and direct debits etc) - the banks will then offer a 3-5% interest rate on a limited balance for a limited amount of time, as a loss-leading sweetener to tempt the customer in the hope they can cross-sell loans, credit and other services.

As a club who is not going to buy profitable products from the bank, you're not in that demographic, so good luck finding more than a percent AER for your half-year time period.

MaxXX

You can buy bonds, but £20K is so tiny so doesn't worth the hassle

jonmp

Ah well, I suspected that was the case.
Thanks anyway for replying

Jon