Take interest in your team

By JUSTIN HARPER FOR MAILONLINE
Updated: 06:35 EST, 10 August 2005

AS THE new football season kicks off, many fans will be tempted by the credit cards, savings accounts and even mortgages their clubs are offering.

But be warned: you may be sacrificing decent interest rates for loyalty when you take out their financial products.

Take savings accounts, for example - West Bromwich Building Society offers the best rates on football affinity savings with accounts for fans of Aston Villa, Birmingham, and West Brom. It pays just 1.92% (2.4% before 20% savings tax) on £100 and 2.8% (3.5%) on balances of £5,000 and above.

Britannia Building Society is also a big player in this field, with accounts for Chelsea, Everton, Liverpool, Manchester City and United. It pays 1.84% (2.3%) on £100 and 2.84% (3.55%) on balances of £5,000 and above.

But while these accounts can easily be beaten on the High Street - Sainsbury pays 2.88% (3.6%) on a £1 while Bristol & West pays 3% (3.75%) on £100 - there are benefits to football accounts.

Britannia BS accounts all give 1% of your balance back to the football club. Last season, this generated almost £1m for Chelsea, Manchester United and Liverpool.

There are also other benefits for fans, such as discounts in the club shop - Aston Villa gives savers a £5 voucher for purchases above £25 at its superstore.

Fans also benefit from a club's success. Liverpool lifted the Champions League trophy in May so fans get an extra 1% interest although this only lasts for two months. Manchester United pays an extra 1% for two months if it qualifies for the Champions League.

There are some decent paying children's football savings accounts with Chelsea, Liverpool and Manchester United all paying 4.55% interest on their accounts, which are also provided via Britannia BS.

Mike Naylor, a spokesman for consumer watchdog Which?, says: 'You shouldn't be taking out a football savings account to get the best interest rate but only if you want to give a little something back to your club. However, you could just put the money in a high interest- earning internet account and make a donation from that instead.'

Credit cards are also a big seller. MBNA provides the majority of the Premiership clubs' plastic, including Newcastle, Tottenham and West Ham. The cards all offer a 1.9% balance transfer rate for nine months and a 15.9% APR.

Fans can get much cheaper interest rates elsewhere - there are many 0% deals, including Co-op Bank and Halifax/Bank of Scotland on balance transfers and new spending.

Peter Gerrard, at price comparison website www. moneysupermarket.com, says: 'The kudos of holding your club's card in your wallet is understandable, yet football fans would be well advised to check exactly what benefits they will derive with their team compared with regular credit cards.'

Manchester United Finance now offers mortgages, loans and insurance products. Its mortgages are provided again by Britannia BS, and it has a two-year fixed rate of 4.49%. But you can get a cheaper two-year fix of 4.22% from Newcastle BS.

The Ipswich Town Save and Support account, which pays 1.84% (2.3% before tax) on £100, is run by Britannia BS and gives back 1% of the fans' balances to the club. Last season, it handed over £611,000. Mr Parnell, a 39-year-old plumber who lives in Ipswich, says: 'It's not the best interest rate, which is why we have savings elsewhere, but it benefits the club and we get a discount card which saves us money in the club superstore.'