8th February 2012
Why is it so difficult for charities and trusts to find savings accounts that offer good returns on their deposits? This is the question Shawbrook Bank asked after identifying a gap in the market for suitable savings products for charities and trusts, including schools with charitable status.
For many schools, the interest earned on their cash reserves is an important funding stream. Surely they should be offered savings accounts that help them to make the most of their much-needed cash reserves?
Unfortunately, charities and trusts face little choice and flexibility when it comes to competitive savings products. As a result, many organisations are forced to deposit their money into instant access accounts that may offer minimal profit on cash reserves. Few schools have the time to trawl through the best-buy tables looking for savings accounts that are available to charities and offer competitive rates.
At the end of 2011, Shawbrook responded to this shortfall in the market and launched a new 100 day notice account for charities and trusts. The account offers organisations within these sectors, including schools with charitable status, competitive returns oncash reserves with the flexibility of a notice account.
Owen Woodley, CEO of Shawbrook Bank, explains why they launched the new account: “We know that charities and trusts in the UK are currently poorly served when it comes to savings accounts, with a lack of choice and uncompetitive interest rates. As a result, many organisations have no choice but to leave large sums of money in accounts with low rates, which for many charities can mean the difference of thousands of pounds less in interest each year.
“We created the new charity savings account specifically to meet the needs of charities and trusts, to help their cash reserves to go further.”
He added: “We’re looking to broaden our suite of products for these organisations, and we’ll be listening carefully to what charities and trusts want and need in a bank. As a straightforward, no nonsense bank, we are committed to being easy to deal with and saving our customers time, which we know is extremely important for busy school bursars.”
It’s reassuring to know that as a traditional savings and lending bank, Shawbrook has no exposure to the Eurozone, meaning they’re a stable bank, free of toxic debt. Customers can feel confident they’re savings are secure.
Launched in October 2011, Shawbrookoffers a range of savings and lending products for personal and business customers, including secured loans and home improvement loans.
For further details on the account or for more information on Shawbrook Bank, please visit www.shawbrook.co.uk
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