Donating money to charity usually gives donors a dose of goodwill but little else. A new charity bond, however, pays a market-leading rate as well as donating a percentage of the value of all deposits to the Royal British Legion’s Poppy Appeal.
The charity pay-out isn’t overly generous: the 18-month, fixed-rate bond from Coventry Building Society offers savers 3.55 per cent interest on their money, and donates just 0.05 per cent of the total deposit to the Poppy Appeal. That, however, is better than nothing and the savings rate is one of the best on offer.
“This fixed-rate bond ties your money up for 18 months and will appeal to those savers looking to help a good cause,” says Paul Davies, savings analyst at consumer group Which?
“You can get 3.55 per cent or 3.6 per cent on one-year fixed-rate deals, so this offer isn’t quite at the top of the tables, but it’s still very competitive.” To apply, visit coventrybuildingsociety.co.uk or call 0845 766 5522.
It’s the best charity savings account on the market by some way, but there are alternatives for those with another special charity in mind. Teachers Building Society’s Charity Saver account pays out 3.5 per cent, although it’s a regular saver with a minimum deposit of £10 per month. It donates 0.25 per cent of the average month-end balance each calendar year to the Teacher Support Network.
Charity Bank’s Small Steps account, a children’s savings bond for six months, pays 2.02 per cent and promises to only use the money invested in it to support charities and social enterprises that are doing community work. Alternatively, Yorkshire Air Ambulance Rollover Bond pays two per cent, fixed for a year with a minimum deposit of £100.