Charity bank accounts 'could earn £60,500 extra a year'

Charity bank accounts may help third sector organisations achieve their objectives, as one organisation claims the groups should "make the most of that they have got".

Fair Investment Company (FIC) director James Caldwell reports research by Investec shows donations fell by 9.6 per cent during the first six months of 2010, with more than ten million Britons admitting they have cut back on the amount they give to worthy causes.

The average charity bank account pays 0.29 per cent, he claims, while finance products from FIC offer up 1.21 per cent more interest, a difference that translates to £60,500 earnings a year on a deposit of £5 million.

"Charities have an obligation to make the most of the donations they are given and many may well not be doing this by sticking with such a low paying savings account," states the group director.

Dealing in savings and pensions as well as investments, the group provides financial services such as information and online guides.  ADNFCR-2318-ID-800123645-ADNFCR