United Trust Bank (UTB) has expanded its range of savings solutions for charities with the launch of a new 5 Year Charity Bond with a market leading rate of 4.70% Gross/AER* fixed for the term.
The new account has been designed to provide charities able to set aside some of their reserves for longer periods with certainty of income in an uncertain economic environment. It sits alongside UTB’s existing Easy Access, Tracker, Notice, Fixed Term and recently launched Limited Access accounts designed to provide charities with a choice of options to suit their liquidity and cash management requirements.
UTB believes that charities could benefit from segmenting reserves according to their purpose and expected use. Operational cash may be best suited to an Easy Access Account**, currently paying 3.50% Gross/AER* variable, longer-term reserves may be more appropriate for Fixed Term accounts, whilst funds which require occasional access could benefit from a Notice or new Limited Access Account** which allows up to two withdrawals per 12-month period to qualify for the premium 4.15% Gross/AER* interest rate.
Key features of the new UTB 5-Year Charity Bond Account:
- Available to Charitable Incorporated Organisations (CIO), Charitable Companies (Limited by Guarantee), Charitable Trusts and Exempt and Excepted Charities
- 5-year fixed rate bond
- 4.7% Gross/AER* payable for the entire term
- £5000 minimum balance per account. £5million maximum balance per account – higher limits may be available upon request
- Interest is calculated daily using the cleared balance of the account and paid annually and on maturity
- Interest can be added back to the account or transferred back to the customer’s nominated bank account
- UTB Charity Deposit accounts can be managed online, by email, post and telephone.
Stephanie Charsley, Head of Deposit Solutions at United Trust Bank, said: “When the economic landscape is uncertain, charities can get peace of mind from securing a guaranteed long term return regardless of what happens to Base Rate.
“Charities need to make their funds work as hard as possible whilst retaining the liquidity they need to provide vital support and services. At UTB we’re dedicated to making that job easy by offering a range of different accounts backed by excellent customer service from people who understand charity banking.”
* AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.
**The minimum balance of the Charity Easy Access Account is £5000. The maximum is £3m. The minimum balance of the Charity Limited Access Account is £5000. The maximum is £150,000.
Although this may contain helpful information and tips, this is not advice. You may wish to seek advice from a financial advisor if you are unsure about next steps.
For further information on UTB’s range of charity savings products, visit the Bank’s website HERE or contact the team on 0207 190 5599 or Freephone 0800 083 2228, Monday to Friday, 9 am to 5 pm.