Redwood Bank research highlights the potential of ‘smarter saving’ in the charity sector
- By editor
- Apr 8
- 2 min read
Research by specialist business bank, Redwood, has indicated that charities may be able to improve financial resilience through smarter approaches to saving.
The bank surveyed 413 UK charities with annual incomes between £50,000 and £10m.
The research revealed that many charities hold substantial cash reserves, yet almost half lack confidence in their long-term financial stability.
Redwood said that the study highlights an opportunity for charities to make their money work harder, and that by reviewing where cash is held and exploring more suitable savings options, charities could strengthen resilience without increasing risk or reducing accessibility.
The findings showed that 69 per cent of UK charities hold over £50,000 in savings, with almost half (46 per cent) holding more than £100,000. When current accounts are included, 84 per cent hold more than £50,000 and 68.5 per cent hold over £100,000.
The research also found that while 81 per cent of charities review their savings at least annually, many still do not seek alternatives that could improve returns. Fewer than half (44 per cent) do not hold a savings account with a second provider, choosing instead to keep their money in a current account, with over a third of these charities citing lack of awareness of the options available.
In addition, the survey highlighted what matters most when choosing a savings account. Alongside competitive interest rates (85 per cent), charities valued accessibility and withdrawal terms (72 per cent), bank reputation (60 per cent), digital ease (56 per cent) and ethical or social values (51 per cent).
Jessica Darrah, senior savings product manager at Redwood, said: “Charities are working tirelessly to support communities but are often doing so under financial strain and with limited options.
“Our research shows that while many have substantial reserves, these funds are not always working as hard as they could or should be. When every pound matters, smarter saving strategies could make a real difference to financial resilience.
“As a specialist business bank, we can provide personal service with consistently competitive savings rates. The bank has been recognised as the ‘Best Business Variable Rate Deposit Account Provider’ at the Moneyfacts Awards for seven consecutive years, reflecting our commitment to delivering value and clarity for customers.
“Unlike traditional high-street banks, we can focus on understanding the specific needs of charities and smaller organisations. Our dedicated savings products and knowledgeable team aim to make saving simpler, more transparent and better suited to the realities of the sector.”
Pictured: Jessica Darrah
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