CAF Financial Briefing

1
CAF Financial Briefing

• Ron Green, Senior Manager, Product Development
  Distribution
• Charity Financial Services
• Produced by CAF Marketing Services Limited
• Authorised and Regulated by the Financial
  Services Authority

2
Cash

• sometimes forgotten
• capital security, liquidity
• cash management
• cash flow forecasts
• active management
• appropriate accounts

3
Cash you can lose the benefit

• beware tricks of the trade
• - bonus accounts
• - value eroding terms
• - hidden costs
• - retired accounts
• maximise return
• - interest frequency
• - variable fixed rates
• - efficient management
• - gross interest payments

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The Markets
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You cant beat the market, can you?

• Source BBA website
• Birmingham Midshires 1.5.08
• Libid calculated at Libor less 0.125

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Cash-you cant beat the market
Source BBA website Birmingham Midshires
1.5.08 Libid calculated at Libor less 0.125
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Cash you can gain the benefit

• CafCash current account
• 4.13 to 4.72 AER
• CAF Gold deposit account
• 4.88 to 5.08 AER
• CAF Fixed Rate Selector
• 3 months 5.84 AER
• 6 months 5.63 AER
• 1 year 6.30 AER
• (monthly interest)
• monthly interest paid cannot be reinvested
  directly back into this account
• this figure assumes interest paid monthly can be
  reinvested at the gross rate of 6.12
• ALL RATES AS AT 15.5.08

Crassula arborescens
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Notes Interest Rates

• gross
• the contractual rate of interest payable from
  which tax would normally be deducted. Since this
  account is available only to charities and other
  non-tax paying charitable organisations this is
  the rate you will receive
• AER - Annual Equivalent Rate
• this illustrates what the rate of interest would
  be if interest was paid and compounded once each
  year. As every savings advertisement for a
  savings product which quotes an interest rate
  will contain an AER, you will be able to compare
  more easily what return you can expect from your
  savings over time
• monthly interest rate - AER
• this is for illustrative purposes only , as
  monthly interest payments cannot be paid back to
  the Selector Account