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Giving Made Easy

Giving Made Easy

Category: Money

Updated: 31/10/2008
First Published: 06/11/2006

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

National Giving week is upon us, and with Children in Need just around the corner consumers may be considering the best ways to give to their chosen charity. By using one of the growing numbers of charity savings accounts or credit cards consumers can donate every day as part of their everyday banking.

Savings

Rachel Thrusell, Head of Savings at moneyfacts.co.uk comments:

"The affinity account market is still dominated by sporting causes, but charity affinity accounts are beginning to grow in popularity. Today, you can choose from 32 accounts which donate funds to a variety of charities, ranging from worldwide causes to local based charities.

"At the start of National Giving week, we see the launch of two new charity affinity accounts from West Bromwich BS and Coventry BS.

Provider / CharityMin DepositRateDonation
West Bromwich BS / Help the Aged £25£25 – 3.75%; £5K – 4.00%; £25K – 4.25%Up to 1% of average balances paid to Help the Aged

(Rates include a 0.50% bonus to 31.3.07)

Coventry BS / St Cross£1003.75%1% of average balances paid to Friends of the Hospital of St Cross in Rugby. Consumers also have the option to donate any interest earned to charity.

"Whilst the charity affinity savings accounts do not pay market leading rates of interest, they are by no means the lowest on offer. Some consumers would be more than happy to sacrifice a little of their interest rate in the knowledge that their chosen charity will benefit as a result."

Cards

Samantha Owens, Head of Personal Finance at moneyfacts.co.uk comments:

"Today almost 70 charity donation cards are available, covering most well known charitable organisations. Most cards will donate a specified sum when you first use the card, followed by a further percentage of spend being payable to the charity each time the card is used.

"While we have seen the affinity card deals improve, as competition strengthens, the majority of charity donation cards do charge a higher than average interest rate. So for those consumers without a competitive deal and holding a balance on their card, this can be a costly way of giving.

"In this case it may be beneficial to make use of a balance transfer deal, or at the very least a low rate purchase card and use the cost savings to give independently to charity. Alternatively a standard cash back card, which typically offer higher returns could be another simple method to raise funds.

"Whilst the idea of giving to charity simply by spending on your credit card or investing your savings can be a simple and effective method, make sure that the contents of your purse or wallet don't suffer in the process. Always look into whether using alternative products with preferential rates could save you money and enable you to make individual donations to the charity of your choice."

Charity Cards Selection

CardDonation on OpeningDonation on PurchaseTypical Purchase APRCash Per Annum
Cancer Research UK Visa£200.25%16.9%22.95%
Greenpeace Visa£150.25%**17.9%17.946%
Oxfam Visa£150.25%**17.9%17.946%
American Express®  Red£51.00%**12.9%20.555%
Barclaycard Charity Visa *£50.30%17.9%27.9%

* Card donates to Marie Curie Cancer Care, Samaritans, Save the Children, The Woodland Trust and CAF.
** Further donations may apply.

Figures correct at 16.10.06

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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