New football season - new savings account or credit card?

Football loyalty accounts are a fun way to support your local club as well as doing good by encouraging you to save, making a donation to the team, or giving you discounts in the club shop. Several clubs have teamed up with banks, building societies and credit card companies, so, if you are a football fan, you should be able to find one for the team you support.

Lisa Taylor, analyst at data provider Moneyfacts, says, "With almost 70 football affinity accounts on offer, most fans will be able to find a savings account which helps boost the coffers of their favourite club. It's worth checking out your own team's website, as most will show links to their affiliates.

"Alternatively, it's worth looking at Norwich & Peterborough building society, Britannia building society and West Bromwich building society, the main providers of football savings accounts."

But are the accounts a good deal? The golden rule when looking for a savings account or credit card is "forget the bells and whistles and look at the rate" - and your devotion to your team could come at a price.

Which is the best savings account for you? Let Moneyextra guide you to the right choice with our comparison service.

Miss Taylor adds, "Although the interest rates on these accounts are not marketing leading when compared with some of the online savings accounts currently available, the rates are in line with many branch-based accounts.

"However, it's not just about the interest you'll receive as an individual; there is a trade-off insofar as some financial benefit is given to your club. The average rate payable at £5000 on football affinity accounts is 3.97%, which is not too far off the average for the whole savings market of 4.07%."

So, how does holding an account benefit the club? On average most affinity accounts will provide a 1% donation each year, so for every £1,000 invested for that year your club will receive £10.

Miss Taylor says, "For many of the smaller clubs making ends meet can be a struggle, so by just investing your money in a football affinity account you could be making a real difference to the future and the success of your team."

For instance, Britannia building society, which offers savings accounts for Arsenal, Bristol Rovers, Bristol City, Chelsea, Everton, Ipswich Town, Manchester City, Manchester United, Stoke City, Port Vale, Chelsea, Liverpool and Sunderland, returns a bonus to the clubs, based on the average daily balances of the savings accounts - last season, the thirteen clubs netted a total of £3.5m from Britannia.

Perhaps surprisingly, it is often the smaller clubs that benefit most - and it is children who are the keenest savers. Tim Franklin, managing director of member business at Britannia, said, "You may expect the bigger Premiership clubs to have the highest number of accounts, simply because they have such huge fan bases, but our figures show that it's the fans of the smaller clubs who are the most loyal when it comes to saving."

Britannia's figures also showed that junior fans of Arsenal, Bristol Rovers, Chelsea, Liverpool, Manchester City and Tottenham are better savers than their parents, with each club holding more Junior Save and Support accounts than adult ones.

Tim added, "The fact that more than a quarter of Save and Support accounts are held by children, and several clubs have more junior Save and Support accounts than adult ones, is a positive sign, as it shows that youngsters already have good savings habits."

Do remember that you could be sacrificing the best rates of interest on your savings - though, if you are really keen fan, the perks of the account could outweigh the financial downside. Perks can include discounts on club purchases, prize draws, free ground tours and match tickets and a whole array of other incentives Save for your season ticket

A football loyalty account is the ideal way to save for your season ticket, too. This year the Derbyshire building society is offering a special season ticket savings account. Moneyfacts' Lisa Taylor says, "The Derbyshire BS Season Saver is perfect for any fan looking to start early and save for next year's ticket. The account matures ready in time for next season (31.5.08), and allows regular monthly deposits of between £10 and £100. It pays a respectable rate of 6.5%, and on maturity converts to a Rams Saver.

"While better rates can be found on other regular saver deals, this account is ideal for its purpose, fitting in with the timing of the season, and can be a great home to keep this money separate from your general savings."

14 August 2007 © Moneyextra.com

back

Moneyextra.com recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.