Loyal football fans forgo better cash returns

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 at start of another new season thanks partly to the ongoing financial support of their loyal fans via affinity savings accounts.

Although 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 (Saturday 14th 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:

Norwich & Peterborough BS savers have contributed over £3.16 million to Norwich City FC over the last 13 years

Ipswich Town have benefitted to the tune of over £6.8 million in support of its youth development since the launch of an affinity account with Britannia in 1998.

Since 1999 over 12,600 fans have opened Stoke City save and support accounts with Britannia, earning more than £3.3 million for the club.

Britannia has given Port Vale FC more than £2.5 million since1999 for future club developments thanks to more than 5000 fans who have signed up for an account

Wolverhampton Wanderers have received over £700,000 since 2003, courtesy of the tie up with Birmingham Midshires.

West Bromwich BS launched the first football affinity account in 1996 for West Bromwich Albion which has since raised £2.2 million to date.