Earn a 10.30% Return Over 5 Years on Deposited Funds!
March 2005
This is hot news for savers with a 5 year outlook.
A combination of government sponsored tax-relief and The Charity Bank means that savers (higher-rate tax band) can get a 10.30% yield (p.a.) over 5 years almost guaranteed. (8.25% p.a. for a basic rate payer).
The Charity Bank is a new business that makes loans to worthy causes (building new facilities, renovating buildings, creating social and economic capital etc). It's fully supported by the government and regulated by the FSA. Depositors receive up to 2% interest direct from the bank and 5% tax-relief from the Inland Revenue.
It's therefore the tax-relief that makes the offer sizzle.
Smallprint?
It's for long term savers only because a) the Inland Revenue stipulates that to obtain maximum tax-relief under the CITR (Community Investment Tax Relief) investors must keep their deposit in the account for at least 5 years, and b) you cannot withdraw your money for at least 3 years and then only 25% in year 4 and 50% in year 5.
See the FAQ for more detailed explanations - Click Here
Guaranteed?
The interest that the bank pays you is not guaranteed but your capital up to a certain amount is. Deposits with the bank are covered by the financial services compensation scheme in case the bank fails. The guarantee pays 100% of the first £2,000 of any deposit and 90% of the next £33,000.
See the FAQ for more detailed explanations - Click Here
A deposit made before 5th April 2005 will result in a tax saving for the 2004/05 tax year.
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