You are here: Home - Credit Cards & Loans -

Charitable giving can survive the crunch

Written by:

Despite Brits feeling the pinch a year on from the start of the credit crunch, Moneyfacts has reiterated that donating to charity doesn’t have to involve putting your hand in your pocket.

Michelle Slade, analyst at Moneyfacts, said: “With charity savings accounts, the institution makes a donation to the selected charity, typically around 1% of the balance of your account.

“Savers should be warned that these accounts do not pay the highest rates on the market. By donating to charity, you could be losing out on additional interest from having your money in a best-buy account.

“However, it is worth noting that the majority of charity savings accounts are branch-based accounts and the rates on offer are equal to other branch-based accounts on the market.

“There are numerous charity savings accounts on the market, with affiliations to many worthy causes such as hospices, air ambulances and wildlife trusts. So whatever your chosen charity, you can make a donation just by having your money in a savings account.”

Charity credit cards are another way of donating without it having to cost you a penny.

Slade added: “A donation of up to £25 is made when the card is first issued or used. After this the card issuer will donate typically 0.25% of the value of purchases made.

“These cards do not offer the longest deals on the market, but with introductory purchases deals of 0% for six months and balance transfer deals of 0% for 12 months, they are not far off the market-leading deals.

“Another pitfall with these cards is that many charge high purchase APRs, with rates of 18.9% quite common. However, rates as low as 11.9% can be found and many charge rates around the market average. If you pay your balance off in full each month the APR is unimportant and you can donate to your chosen charity without paying a penny in interest.”

Related Posts


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Brits displaying banking loyalty

One in five Brits have consolidated their financial products with one provider, according to research from Abbey Banking.