Charity Bank hails increased depositsConsumers flock to ethical provider's Charity ISA
21 May 2009
Charity Bank, the UK's only fully regulated bank that is also a charity, has reaped the benefits of public distrust of major high-street banks.
Charity Bank revealed in its newly published 2008 accounts that deposits grew by almost 7% in 2008. Loans to charities and community projects grew by 40% in the year to April 2009 - a sixfold increase since December 2002.
Charity Bank is unique in the UK - it only uses savers' and investors' funds to finance lending to charities. Unlike other banks that have suffered in the credit crunch due to their own high debt levels, Charity Bank does not raise funds in the money markets, thereby reducing its exposure to financial turmoil in the city.
'Recession hitting ordinary families'
In his annual report statement, Charity Bank chairman David Clark commented, 'The sudden nature and intensity of this globally-felt recession will not just affect the disadvantaged and excluded, but ordinary families whose lives will be up-ended by the loss of a job or even a home.
'Against this background, the contribution that Charity Bank can make in supporting communities is more important than ever.'
Find the best cash Isa for you
Unfortunately, Charity Bank has recently withdrawn its very popular Best Buy cash Isa. However, it does plan to relaunch it later this year.
To find out the best cash Isa currently available, check our Which? Best Buy cash Isas. For more details on Charity Bank's work and products visit its website.
Look out for a forthcoming Which? Money newsletter that will include an interview with Charity Bank Chief Executive Malcolm Hayday.
Which? Money when you need it
You can follow @WhichMoney on Twitter to keep up-to-date with our Best Rates and Recommended Provider product and service reviews.
Sign up for the latest money news, best rates and recommended providers in your newsletter every Friday.
Or for money-saving tips, and news of how what's going on in the world of finance affects you, join Melanie Dowding and James Daley for the Which? Money weekly money podcast
For daily consumer news, subscribe to the Which? news RSS feed here. And to find out how we work for you on money issues, visit our personal finance campaigns pages.