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football savings accounts offer measly returns for fans but a vital boost to club coffers
Published: 05/08/2010 |
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05 August 2010 Andrew Hagger of Moneynet.co.uk looks at how football clubs continue to benefit from the savings habits of their devoted fans. A number of football league clubs will run out onto the pitch to start the new season thanks partly to the ongoing financial support of their loyal fans via affinity savings accounts. Whilst these accounts continue to provide a much needed boost to club coffers, devoted supporters are now receiving next to nothing by way of interest for themselves. As we approach the football league kick off this Friday 6th August (Saturday14th August for the Premier league) the average interest rate on a football savings account is now paying just 0.14%. To put this into perspective, a footie fan with £2,000 would earn just £2.24 interest in a year after basic rate tax. If their cash was deposited in the best buy instant access rate of 2.80% from AA savings their annual return would be a much healthier £44.80 net of tax. It seems that loyal fans are prepared to forgo a far better return on their cash on the understanding that the depleted coffers of their beloved team will benefit as a result. Many clubs in the Football League from the Championship through to League Two are living a hand to mouth existence with new cases of clubs facing administration every season. Those not lucky enough to have the backing of overseas multi-millionaire club owners or massive TV payouts to rely on need all the financial support they can get. Supporters up and down the land have been saving in ‘affinity savings accounts’, in some cases for over ten years, and have helped pump millions of pounds into their favourite club (see details below). Affinity accounts won’t provide savers with a best buy return on their money (you can currently earn 2.80% gross with an instant access account from AA) but many supporters are happy to sacrifice a higher rate of interest in return for being able to do their bit for their team. Britannia, Norwich & Peterborough BS and West Bromwich BS are the main providers of football savings accounts in the UK and between them have provided a valuable lifeline to clubs and, in particular, their youth academies. Each year these providers present the football club with a cheque for up to 1.25% of the value of the combined daily average savings balance for all accounts held by its supporters. Here’s the scorecard of money raised to date:
ENDS
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