To mark Good Money Week (8th to 14th October) Charity Bank, the savings and loans bank with a mission to use money for good, is challenging charities and businesses to consider what their current bank is doing with their money and whether this is aligned with their organisation’s values.
Research commissioned by Charity Bank earlier this year into the attitudes of the public towards various aspects of banking found that 74% of the British public don’t know how their bank is using or investing their savings, whilst 71% would like their bank to make it clearer where their money is invested. In Charity Bank’s experience, there is a growing number of charities and socially-responsible businesses that are concerned about the social and environmental impact of where their savings are invested.
Launched this week, Charity Bank’s Ethical Easy Access Account offers a competitive rate of interest (of 0.50% gross/AER) to organisations looking for same-day access to their deposits. Money saved with Charity Bank is used to provide loans to support the work of charities and social enterprises across the UK. Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme, the UK’s deposit guarantee scheme.
Justin Hort, Head of Deposit Strategy at Charity Bank, comments: “Moving savings can feel like a big task. However, it’s good practice to regularly review your savings accounts. Whilst the rate of interest often drives savings decisions we also encourage those managing charity or business finances to consider what their current bank is doing with their money.
“Our new Ethical Easy Access Account enables organisations to apply swiftly online, as well as receive personal support from members of our savings team if they wish. Because we are using our savers’ money to fund loans to charities and social enterprises, organisations can ensure their reserves are working for good whilst obtaining a competitive rate of interest.”
Annette Uttley from Voluntary Action Rotherham, a long-standing savings customer, said: “Our aim is to support groups and charities within the Rotherham borough and it’s important to us that every aspect of our work remains in line with our charitable mission. Charity Bank’s reputation and ethos encouraged us to open a deposit account with them in 2010, and its continued positive impact and fantastic customer support have kept us with them ever since.”
At Charity Bank, savers are provided with details of where their money is lent. Sandford Hydro is just one of the places that Charity Bank is helping have an impact. Upon completion, Sandford Hydro will be the largest hydro-electric plant on the Thames, generating approximately 1.6 GWh of clean electricity each year — enough to power around 500 households. Sandford Hydro is the brainchild of local community members, who saw an opportunity to do something good for the environment and to show what can be achieved when a community comes together in this way.
Adriano Figueiredo, Operations Director at Low Carbon Hub, comments: “We approached several banks for funding to help secure the future of Sandford Hydro, but what became clear very quickly was that Charity Bank really cared about our project and wanted to be a part of making it happen. Most commercial banks were singularly focused on the ﬁnancial side of it, whereas Charity Bank was also interested in the social and environmental impact that our project would create. There was a clear alignment of objectives and we’ve had nothing but support and invaluable help.”
Since 2002, Charity Bank has provided over £195 million of loan finance to support organisations working to enrich and improve society. These loans have facilitated social impact across the UK covering a wide range of sectors. Charity Bank is one of the world’s most ethical companies, according to research carried out by The Good Shopping Guide. It is owned by charitable foundations, trusts and social purpose organisations; its staff do not receive discretionary bonuses. Charity Bank is also the only bank in the UK with the Social Enterprise Mark, recognising its social purpose and social sector ownership.
For more information on Charity Bank’s new Ethical Easy Access Account visit www.charitybank.org or call 01732 441944.