How to Maximise Returns on Charity Reserves Without Compromising Access
For charities, financial reserves are essential. They provide stability, support future projects, and act as a buffer during uncertain times. But in a landscape of fluctuating interest rates and multiple savings options, how do you make the most of those reserves, without losing access when you need it?
Why Reserves Matter
Reserves are a key part of financial planning. Whether short-term or long-term, they help charities stay resilient and mission focused. Yet many organisations stick with their current banking provider without exploring better rates or more flexible options, potentially missing out on income that could be reinvested into their cause.
Making your reserves work harder by earning interest is not just smart, it’s vital for financial sustainability.
The Challenge: Access vs Returns
A common concern is that locking funds away for better returns means losing access when needed. This is especially important around grant cycles, payroll, or unexpected costs.
But there are savings products designed to balance growth with flexibility. Understanding the difference between account types can help charities make informed decisions.
Savings Options That Work for Charities
Notice Accounts
Notice accounts allow access to funds with a set notice period, typically between 30 and 180 days. They offer higher interest rates than instant-access accounts and are ideal for reserves that may be needed with some planning.
• Interest continues to accrue during the notice period.
• Some accounts may limit withdrawals or apply penalties for early access.
• Best used alongside an emergency fund for day-to-day needs.
Fixed-Rate Bonds
These accounts lock funds for a fixed term (e.g. 1 or 2 years) and offer guaranteed interest rates. The longer the term, the higher the rate, making them ideal for reserves earmarked for future projects.
• Funds are only accessible at maturity.
• Offers stability and predictable returns.
• Useful for long-term financial planning.
At Cambridge & Counties Bank, we offer both account types, designed to help charities earn competitive returns while maintaining the flexibility they need.
Practical Tips for Planning Your Savings Strategy
- Map your cash flow: You could think about aligning savings with project timelines, grant income, and payroll dates.
- Segment your reserves: Consider whether you want to keep a portion in easy-access or short-notice accounts for operational needs, and place longer-term reserves in fixed-rate bonds.
- Review regularly: Interest rates and financial needs change—revisit your savings strategy as and when needed.
Banking with Trust
Your reserves should be safe and aligned with your values, and we make that a priority. Cambridge & Counties Bank is proudly owned by Trinity Hall, Cambridge and the Cambridgeshire Local Government Pension Fund. Founded in 2012 by two respected institutions, we combine the best of traditional banking - personal service, transparency, and long-term relationships - with the speed and innovation charities expect today.
We avoid speculative markets, maintain strong financial foundations, and regularly stress test our business to ensure resilience. With one UK banking licence, eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per depositor. No subsidiaries, no complex structures, just a straightforward, dependable bank.
• £241m in capital reserves and £35.8m profit in 2024
• Regular stress testing to assess resilience against economic and operational shocks
• Clear reporting and open communication
Real People, Real Support
Digital processes make things easier, but we know charity banking isn’t always straightforward. Multiple trustees, compliance checks, and unique governance requirements can add complexity. That’s why we keep things human – with real people on hand to answer questions and guide you when it matters most.
For larger charities with £1m+ deposits, we offer a truly personalised service. But whatever your size, our goal is the same: to make banking simple and supportive for every organisation.
Explore Your Options
If you are interested in opening a charity savings account, or would like more information, call our dedicated team on 0344 225 3939. Alternatively, you can explore our savings accounts online.
We’re real people to help real missions.