By Miriam Bell from CommunityNI.org
Published on 04 Mar 2005
Charities Aid Foundation has launched a new savings account that will protect charities from losses on the stock market.
A new account has been launched by Charities Aid Foundation (CAF) which combines monthly income with growth potential and capital protection.
The account, called Charity Guaranteed Reserve, is the first of its kind and is designed to offer charities the security of a deposit account, with an attractive income and also the growth potential of the stock market.
The account is aimed exclusively at the not-for-profit sector and has been designed by CAF in partnership with Bristol & West bank.
"This has upside potential but no downside " explains John Rogerson, head of investment services at CAF, "Even if the market goes down, charities will be protected from the fall and they will get a reasonable slice of the pie if the market goes up."
There are two components to the Reserve. Half of the capital is placed in a high interest account, receiving a fixed rate of 5% monthly (5.12% AER), while the remainder is deposited in a growth account linked to the performance of selected world stock markets.
The minimum deposit is £5,000 and the maximum is £10 million. There is a limited window available for investment. Charities will be able to make deposits into the Reserve from 1 June - 31 July 2003.
Although the new CAF account has been designed for a fixed, six year period, charities can gain access to their money before that time.
More information
Visit CAF's website for further details about the account atwww.CAFonline.org/ccs .
See also the two tax effective giving schemes administered by NICVA for CAF - Give as You Earn (GAYE) and Cheques for Charity
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