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football fans see savings rates slashed
Published: 23/07/2009 |
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Moneynet.co.uk looks at how football clubs continue to rely on the savings habits of their devoted fans for a vital source of income A number of football league clubs will run out onto the pitch to start the new season thanks to the continued 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. The average interest rate on a football savings account at the start of last season was 2.47%, however as we approach the football league kick off on 8th August (15 August for Premier league) Moneynet research reveals that the rate has plummeted to an average of 0.19%. The biggest rate reductions have been seen by fans of Wolverhampton Wanderers down 4.5% (5.25% down to 0.75%) and Derby County down 4.35% (4.45% down to 0.10%) The contribution that the clubs receive is largely unchanged now 1.04% compared to 1.11% last year. It seems that loyal fans are prepared to forgo a decent 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. Affinity accounts won’t provide savers with a best buy return on their money (you can currently earn 3.15% gross with an instant access account from Alliance & Leicester) 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 Building Society, 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 societies 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.
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