What are the benefits of a charity savings account?

Having a charity savings account brings many benefits. As well as earning your charity additional revenue, it can help you plan for future expenses, such as equipment upgrades, marketing campaigns or hiring extra staff. It can also create an emergency fund for unexpected expenses, help future credit applications and can show potential investors and partners that you are a credible charity taking your long term financial health seriously.

A charity savings account is a great way to make your money work harder and earn extra revenue, so don’t delay and apply for your account now.

What are charity savings accounts?

They are accounts charities can use to earn interest on money they don’t need to keep in a current account for day-to-day expenses. Most charity current accounts do not pay interest on positive balances, so if you keep surplus cash in your charity current account you are probably missing out on a simple way of making your money work harder and earning your charity extra revenue.

What is the difference between a savings account and a current account?

A charity savings account is very simple in that it allows you to set aside excess money in your charity to keep it separate from the account you use for everyday income and expenditure and to earn interest on surplus money which would otherwise earn little or no interest in your current account. A charity savings account doesn’t usually come with a payment card, cheque book, overdraft or other facilities a current account may offer.

Are there different types of charity savings accounts?

There are three common types of savings account:

Fixed term bonds – These allow you to set aside a one-off sum for a specified length of time and earn an agreed rate of interest during that period. However, with most fixed term bonds, you cannot withdraw your money during the term of the bond, so you should only deposit funds you won’t need to access during that time.

Notice accounts – These allow you to deposit funds whenever you wish and to earn an agreed variable rate of interest on your balance. However, you can only make withdrawals after giving the required notice. For example, with a 40-Day Notice account you would have to request a withdrawal 40 days before you needed to have the money. These accounts offer more flexibility than fixed term bonds and usually pay a slightly lower interest rate as a result.

Instant access accounts – These offer the greatest flexibility as you can withdraw your money at any time. However, these typically pay the lowest rates of interest of the three main types of charity savings accounts.

How do I apply for an account?

Once you have decided which account you would like to open, simply click on the ‘Apply’ button in the Summary Box window for that account and complete the application form. You can send the form via email to [email protected] or by post to Deposits, United Trust Bank, One Ropemaker Street, London, EC2Y 9AW.

What are the types of savings accounts I can open with United Trust Bank?

We offer three types of savings accounts: Fixed Term Bonds, Notice Accounts, and a Notice Tracker Account, which tracks the Bank of England Base Rate.

What types of charities can apply for a savings account?

We accept applications from registered charities and charitable incorporated organisations (CIOs). Charities must be registered on the Charities Commission with a minimum of two trustees, operating in and benefitting areas solely in the UK, where the governing document is not a Trust Deed. In addition, CIOs must be registered on Companies House with a minimum of one director.

Do you accept applications from Charitable Trusts?

Charitable Trusts are normally governed by a Trust Deed and can often be more complex, and United Trust Bank are not currently accepting any applications from charities governed by a Trust Deed.

Do you accept applications from exempt or excepted charities?

No, we do not currently accept applications from any charity that is not registered with the Charities Commission.

How do I choose the best charity savings account?

This decision should be based on your long-term goals and factor in any immediate needs. If you have funds spare that you can afford to set aside for a fixed period of time, a Fixed Rate Bond is an excellent way to grow those funds with a higher interest rate. For more flexibility, a Notice Account may be more attractive as it will allow you to withdraw funds provided you give the required notice period.

What is the minimum and maximum I can invest?

The minimum initial investment is usually £5,000 per account and the maximum is £1,000,000. If you wish to deposit more than this, please click here to find out how we can help you.