Best available interest rates?

Question

Our council has considerable reserves in bank accounts that are earning very little if any interest at all. As much of the deposits are for future spend (currently over £110,000 has been held doing nothing for nearly a year) I have asked the clerk to see if there are any accounts we could move the money to that would earn for the taxpayers a greater return of interest given that rates gave goes up. The clerk required a proposal and approval from full council that was given but designated a low priority! Does anyone know what interest rates and which banks they are using that would give more than 0.2% and that are ethical banks with easy access? Thanks in advance

Answer 1

The issue that you will find is that a lot of banks will not take on parish councils - a large number of banks don't even understand what a parish council is!  We have an account with Redwood which is good.

Answer 2

My concern would be why are you holding this much in reserves for a long period of time?

Comments

Exactly if the difference between the interest rate and inflation is  say 7% you are loosing £7000 per year in value
Think of the millions PC’s are sitting on that are just rotting away or rather being used by financial institutions to generate large profits

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that is my concern but the cllrs despite best efforts voted this as a low priority.......I am resigning after the annual meeting  I cannot bear to see taxpayers money wasted.

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There appears to be a filter in place at some Councils where Councillors who seem perfect for the role leave in disgust and the ones left appear to be there for the status and have no idea what their role is and no interest in finding out

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I agree. If you can, Xian stay on and fight your corner. raise the profile of your council by putting the good things they're doing on facebook. This might interest new councillors like yourself and eventually you can turn the council round. I know this can happen because it happened with my PC but you have to want to do it because it can be hard at times but very rewarding when you become a PC with a majority of councillors focussed  on  positive outcomes for the Parish.