Fall in the number of charity-giving banking products
In 2014, there were 68 charity-giving banking products on the market, including 25 credit cards that made a donation to charities in relation to the number of purchases you made or as a proportion of your credit balance.
Today there are just 28 products in total, a fall of 59 per cent, and all are cash savings products run by building societies, according to the study by Defaqto.
While these products are not always the most competitive, they offer people a convenient way to support a charity.
The Mansfield 180 Day Community Saver account offers the best interest rate at 1.45% AER, however savers must give 180 days’ notice to access any savings. The Mansfield account will make a donation equivalent of 0.10% of the average total account balances to the Society’s Charitable Trust on a quarterly basis.
In comparison, an equivalent normal savings account on the market – the Moneybox Investec 95 Day Notice Savings Account – offers an interest rate of 1.65%.
Alternatively, the Paragon 120 Day Notice Account offers 1.60% interest.
Katie Brain, banking expert at Defaqto, said: “People tend to choose charity savings accounts to help a cause they support, rather than for the interest rate so they may not be benefitting from the best rates available.
“If you want your charity to get more money, you may be better off putting your savings in an account that pays a higher rate of interest and giving the additional money to the charity directly yourself.
“If you don’t have the time or discipline to do that, then these accounts are a convenient way to support your charity.”
|Provider||Product||Access||Gross AER Interest Rate||Amount donated||Charity|
|Mansfield||180 Day Community Saver (1st Issue) *||Notice Required||1.45%||0.10%||Society’s Charitable Trust|
|Melton Mowbray||90 Day Notice Affinity||Notice Required||1.36%||0.10%||Chosen charity from a list|
|Newcastle Building Society||Community Saver (Issue 9)||Instant Access/Cash ISA||1.16%||0.05%||Society’s Charitable Trust|
|Tipton & Coseley||Community Regular Saver||2 withdrawals permitted per yr||1.10%||0.10%||Charitable Foundation|
|Tipton & Coseley||30 Day Community Notice Saver||Notice Required||1.10%||0.10%||Society’s Charitable Trust|
|Newbury Building Society||Charity Account *||Notice Required||0.90%||0.4%||Chosen charity from a list|
|Mansfield||30 Day Community Saver (1st Issue) *||Notice Required||0.85%||0.10%||Society’s Charitable Trust|
|Coventry Building Society||Supporters Account||Instant Access||0.75%||1%||Chosen charity from a list|
|Market Harborough Building Society||Save & Support Plus||Instant Access||0.75%||varies||Society’s chosen charity|
* area restrictions apply.
Source: Defaqto. Rates correct as of 18/11/19