Plastic is fantastic for charitable giving – but only if you repay in full each month!
As we head towards spring, we see the return of many high profile charity events including Sport Relief and Race for Life. But giving to charity doesn’t have to be limited to sponsorship on an event once a year.
Michelle Slade, analyst at Moneyfacts.co.uk, comments:
Credit Cards
“Many charities have their own credit card. These cards make a donation to the charity when you open the card and then make a further donation each time the card is used. The more you use the card, the more the card provider donates to the charity.
“The cards work by donating a percentage of the amount spent on the card. For anyone who uses their card throughout the month and then pays the bill off in full at the end of the month, they could make donations to charity without it costing them a penny.
“Whatever your preferred charity there is likely to be a card for you. Some cards donate to more than one charity such as the Barclaycard Charity Visa, while other are aimed at one specific charity such as the Cancer Research UK MasterCard.
Card |
Introductory purchase deal |
Purchase APR |
Balance transfer deal |
Donation on opening |
Donation on spend |
American Express Red |
N/A |
16.9% |
N/A |
Nil |
1.00% |
Barclaycard Charity Visa |
0% for 6 months |
14.9% |
0% for 6 months on transferred balances up to £5K. Balances after |
£5.00 |
0.30% |
Breakthrough Breast Cancer Visa |
0% for 3 months |
15.9% |
0% for 12 months |
£5.00 |
0.25% |
Cancer Research UK MasterCard |
0% for 6 months |
16.9% |
0% for 6 months |
£20.00 |
0.25% |
Comic Relief Visa |
N/A |
17.9% |
N/A |
£6.00 |
0.50% |
Greenpeace Visa |
0% for 6 months |
18.9% |
0% for 6 months |
£15.00 |
0.25% |
NSPCC MasterCard |
0% for 6 months |
16.9% |
0% for 6 months |
£20.00 |
0.25% |
PDSA Visa |
0% for 3 months |
15.9% |
0% for 12 months |
£25.00 |
0.25% |
Source: Moneyfacts.co.uk 5.3.08 |
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“Unfortunately charity credit cards don’t offer market leading deals for balance transfers or introductory purchases. It’s worth making sure the full deal that comes with the credit card suits your needs. Otherwise you could see yourself out of pocket.
“For example, Barclaycard Simplicity Visa charges 6.8% APR. By spending £1,000 on this card, rather than on the Greenpeace card (outside any introductory deal) you could save nearly £100 in interest over the course of a year, ultimately giving you the option to donate more money than the £17.50 you would have donated with the Greenpeace card.
Savings
“Another way to donate money is by saving money in a charity savings account. The institution makes a donation, which is a percentage of the balance in your account. The more you save, the more they donate to the charity.
Institution |
Account |
Rate at £10K |
Donation |
Barnsley BS |
Yorkshire Air Ambulance Saving Saves Lives |
3.50% |
1% paid yearly in March to Yorkshire Air Ambulance |
Cheshire BS |
Caring for Children |
3.95% |
1% paid to NCH yearly |
Darlington BS |
Hospice Supporter |
1.93% |
1% paid to named Hospices yearly |
Derbyshire BS |
The National Trust Derbyshire Savings |
4.25% |
1% paid to the National Trust monthly |
Newcastle BS |
Key |
3.35% |
1% paid to Shelter yearly. Plus option to donate 0.25% of interest. |
Triodos Bank |
The Charity Saver |
2.85% |
0.25% paid to the charity of your choice yearly |
Source: Moneyfacts.co.uk 5.3.08 |
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“With rates as high as 6.51% being paid on accounts requiring notice and 6.21% paid on accounts with no notice, these accounts are far from market leading. Savers could be better off opting for an account paying a higher rate of interest and then donating a portion of that interest to the charity.
“However for those who don’t want the hassle of sorting out donations to a charity, but want to do their bit, these could be a viable option.”Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry.
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