3. DO YOUR RESEARCH
Review the market. Think about the structure of your charity; some accounts are only available to charities of a particular type, charitable status or size.
You might want to start with your existing bank – particularly if you have a relationship manager. Ask them what they can offer you. This gives you a good benchmark to compare with. You can also get some indications about the best charity savings accounts from online comparison websites.
Your goals will help you shortlist the type of account and approach you need, for example:
- capital growth
- income
- protection of funds
Next rule out any that don't meet any special requirements that you have – for example:
- a bank with an ethical approach
- a minimum or fixed interest rate
- a particular term
- a small minimum deposit or a maximum balance
- an account that allows you to add further deposits
- an account that will give you access to your money, for a fee, in an emergency
Decide how proactive you want to be about managing your money:
- Are you happy to take an introductory offer or bonus then move your money again when the deal’s over?
- Do you want somewhere that consistently offers good rates (but not necessarily the best rates) to avoid having to change accounts regularly?
Check that your account management needs will be met too:
- Does the account have dual authorisation safeguards?
- Can you bank online, by phone or at a branch?
- Are there any fees, charges or penalties for withdrawals or to manage the account?
By this point you should have a clear idea about which is the right account for your organisation. If you’re still not sure which account would suit your charity, talk to your advisers.
Going long term?
With inflation rising, to protect purchasing power over an extended period of time, longer-term reserves can be invested. This could offer you the potential for higher growth, but also has a higher risk.
If you can invest for 5 or more years, then talk to your independent financial adviser to understand what you need to consider. If you don’t have an independent financial adviser you can use a find an adviser tool.
Find out more about the benefits of investing.