Charity Bank - UK's first not-for-profit bank
Charity Bank is a new concept in social responsibility. It is the UK’s first not-for-profit bank whose goal is to provide charities with affordable banking, loans and investment. The bank is urging people to invest their money in a personal account or investment as well as donating directly to charities. If you invest some money through Charity Bank, you will receive between 0% and 2% p.a. gross interest. You choose the interest rate you receive, opting for a low rate or even investing your money for free at 0%. By forfeiting the money you would have made on your investment you allow Charity Bank to provide affordable loans to charitable organisations.
Related stories: Ethical child trust find from Family Investments | Cooperative Banking: Good with money
Here’s a little example of how it might work. Open a personal account and deposit £1,000. If you decide on a 0% interest rate the cost to you may be £50 in lost interest (with a high street interest rate of 5% p.a. gross). So you've given £50, which is used to keep loans affordable for the bank’s borrowers. However, in addition, your entire £1,000 goes to work helping people and communities to help themselves, time and time again. As a deposit, the money is returnable to you, and with one of their CITR Accounts you will receive 5% (£50) tax relief each year for the next five years. Brilliant idea isn’t it!
