This comparison simply includes all savings accounts.
Fixed Rate Bonds For Charities
Fixed rate bonds for charities
Charities, also known as non-profit organisations or NGOs, often rely on fundraising and donations to finance the good work they do.
If you are charity looking for the best way to make your money work harder for you, fixed rate bonds could be the answer.
Fixed rate bonds features
With a fixed rate bond you could earn competitive rates of interest on your capital, if you are happy to lock up your charity’s capital for the long term. Fixed rate bonds are available with most high street banks or building societies. The majority of banks offer fixed rate bonds that run for 1 year, 2 years, 3 years or 5 years.
If you are prepared to leave your capital untouched for a number of years, you could see your capital grow substantially. This is because typically the longer fixed rate bonds offer the highest interest.
There are fixed rate bonds on the market, specifically designed for charities, which offer some of the best interest available.
Although some fixed rate bonds come with a ‘cooling period’ where you can amend your deposit, often you are not able to make a withdrawal for the duration of the bond.
In the event that you do need to withdraw your capital, or close your fixed rate bond early, then you will likely incur a financial penalty from the bank. It is advisable to avoid this at any costs, as a penalty for closing a charity fixed rate bond early is often much larger than other fixed rate bonds and could reduce your capital significantly.
Tax on charity fixed rate bonds
Where the interest from business and personal fixed rate bonds are subject to tax, registered charities are exempt from tax deductions. You can find out how to register as a charity on the government website.