Charity savings accounts 'offering low interest rates'
Charities
23rd April 2010
The average interest rate being paid on savings held by charities in banks was just 0.38 per cent last year.
According to a report by the Fair Investment Company, such organisations are currently receiving nearly 50 per cent less in dividends, equal to 0.34 per cent, than other savers.
It suggests charities may be missing out on large sums by failing to invest their assets in accounts that pay good rates of interests.
Figures from UK Giving 2009 indicated there was an 11 per cent decline in donations to third sector groups last year, meaning that charity accounts are more squeezed than ever.
The firm's director David Doulton said: "It is exactly at these times - when their donation levels take a hit - that charities need to be earning as high an interest as possible on the money they do have."
In December, the government responded to the recession by providing £3.6 million in grants to frontline groups to help them enhance their resilience and provide assistance to those most affected by the downturn.
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