§ Lord Wakefield of Kendalasked Her Majesty's Government:
What is the average rate of interest per annum respectively received by charities from a capital fund (a) less than £10,000; (b) less than £100,000; (c) less than £1 million; (d) more than £1 million and what is the percentage rate of interest return that the charity commissioners consider to be so low as to justify a request for information.
§ Lord BelsteadThe Government are informed by the charity commissioners that the information requested is not available. The rate of interest obtainable on any fund depends on a wide variety of factors, including the mode of investment. The choice of investment is a matter for the charity trustees who should have regard to the purposes of the fund, the need for diversification and the requirement to consider proper advice as provided by Section 6 of the Trustee Investments Act 1961.
The charity commissioners cannot express any general view on what minimum interest rate might call for inquiries. Whether inquiries should be made in any particular case would depend on all the circumstances. If my noble friend has a particular case in mind, he might like to write to the chief charity commissioner.