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Helping your charity or social enterprise become more resilient.

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We are a leading charity, working at the centre of the giving world. We help donors to give more impactfully and charities to build their resilience so they can do more of their life-changing work.

Find out more about CAF

As Rates Fall

Rethinking Charity Cash with Platforms and Pooled Funds

With commentators predicting interest rates to fall in 2026 and beyond, many organisations are considering how best to protect their cash returns.

Instant access and fixed rate/term accounts remain popular, but they come with drawbacks, such as the research required and the administrative burden of managing multiple accounts. In this article, we explore two alternatives: Common Deposit Funds (CDFs) and Cash Management Platforms.

What is a Common Deposit Fund (CDF)?

CDFs are deposit-taking schemes that can be registered as charities. They accept deposits from charities and pool funds together, creating larger sums that are placed on the money markets  —  typically for short durations. This pooling often secures higher rates and spreads funds across multiple institutions.  

Depositing charities retain ownership of the capital and the interest earned. However, being established by the Charity Commission does not guarantee quality, nor does it ensure the fund meets your organisation’s risk or performance requirements.

What is a Cash Management Platform? 

A cash management platform (commonly referred as a platform) allows you to open and manage multiple deposit accounts through a single account held with a platform provider. After opening an account with the provider, you deposit funds into this ‘hub’ account. The platform will then show you a menu of accounts from multiple deposit providers that you can choose to deposit your money in. 


When one of your chosen accounts matures or you withdraw from a notice account, funds return to the hub account for you to access or re-invest. Platforms simplify administration, removing the need for separate applications or direct relationships with multiple banks.

Which option is best for you?

It depends on your organisation’s priorities:

CDFs


  • Easy access to funds (usually within 1–2 days)
  • Competitive, professionally managed returns
  • Variable rates — cannot be fixed, so vulnerable to falling interest rates
  • One account means one FSCS protection (though some allow multiple designations within an account)

Platforms


  • Access to a wide range of deposit types
  • Ability to fix rates over different terms or earn more by giving notice
  • Self-managed deposits, but with streamlined administration
  • FSCS protection per bank, enabling risk diversification
  • Potentially higher rates as banks offset platform fees

Comparing the options

 

Common Deposit Fund

Cash Management Platform

Structure

A charity registered with and overseen by the Charity Commission. Certain activities, such as marketing, will also be overseen by the Financial Conduct Authority.

Providers are registered with and overseen by the Financial Conduct Authority.

Interest

Interest paid gross.

Interest paid gross.

Minimum entry level

Typically, from £1,000 or below.

Varies, but generally initial minimum deposits of £150k+ are required.

Ease of account opening 

Single application to the provider.

Single application to the platform provider. Separate applications are not required for the deposits available on the platform.

Protection against reducing rates

Fixed rates are not available. Paid rates will move with markets.

A range of fixed rates and terms, for example, 12 months or 90 Day notice, is available.

FSCS protection

Yes – current maximum of £120k.

Yes – currently up to £120k for each individual deposit provider / firm used, e.g. you could use 5 providers and achieve 5 x £120,000 cover i.e. £600,000.

Are the products rated?

Some CDFs do subscribe to ratings agencies. 

Platforms usually have a range of rated and unrated Banks.

Fees

Circa 0.25% - 0.35%+ VAT, depending on provider. Look for the Total Expense Ratio (TER) or Overall Cost for the Fund (OCF) to find the true cost and do not just rely on the Annual Management Charge (AMC).

Typically starting at circa 0.25% per annum, and reducing for higher overall balances. Either payable via separate fee or included within the rates displayed from the underlying deposit providers.

Rates as at 02.12.2025

Currently between 3.9% – 4.0%. Rates vary depending on pooled fund returns. Higher rates for higher balances may be available.

As an example, CAF Charity Deposit Platform fixed rates range from 3.5% for 1 month to 4% for 2 years.

Decision-marking requirements 

Initial decision to invest, with regular review to ensure the product and its payable rate remain suitable. 

Initial decision to invest, followed by ongoing management via the platform of deposits as circumstances dictate.

Flexibility

Each CDF has its own mandate that is common to all depositors.

Account holder can configure the underlying deposits to their needs (including FSCS protection) and change deposits as their circumstances change.


For further information, please contact our dedicated local team at:

T: 03000 123 3444

E: clientrelations@cafonline.org