Charity Bank has launched a new savings account for children that will benefit charities and pay interest of up to 2%.
The Small Steps Account for under 16s is the only children’s savings account where all of the money deposited is used to support charities by offering affordable loan finance. The new account aims to encourage the idea of philanthropy from an early age.
Small Steps account owners can choose the rate of interest they receive, up to 2% per year. By choosing a lower rate, savers can also lower the interest rate paid by charities on loans from Charity Bank.
Charity Bank chief executive Malcolm Hayday says: ‘The Small Steps account gives young people their first experience of saving for the common good. As well as learning about the benefits of having a savings pot, they’ll also be learning about the value of money in making a difference.’
Why Charity Bank is unique
Charity Bank is the only regulated bank that is also a registered charity. It is fully authorised and regulated by the Financial Services Authority (FSA) and deposits of up to £50,000 are covered by the Financial Services Compensation Scheme (FSCS).
Charity Bank was formed in 2002 and since its launch has invested in a range of community activities including the arts, sustainable development and re-cycling, drug and alcohol rehabilitation and faith projects.
One organisation supported by the bank is Moelyci Environmental Centre, an organic and eco-friendly farm in Bangor, Wales, which aims to encourage people to develop a more environmental lifestyle through community activities. It wanted to convert a barn into a field study centre and borrowed £50,000 in order to pay for a manager to oversee the project.
Competitive savings rate makes this a great choice for children
Martyn Saville, Which? Money senior researcher, commented: ‘This new account from Charity Bank is great for all concerned. The 2% interest rate it offers is amongst the best currently available on children’s savings accounts. Not only that, but the account directly benefits charities and community organisations and instills in the younger generation a positive sense of community responsibility.
‘The new account from Charity Bank just goes to show that, given the will, it is possible for banks to develop competitive mainstream products that also offer active support for local communities and charities.’
For a full list and details of children’s savings accounts, check out Which? child savings account reviews.
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