CITRA

Our Charity Bank CITRA (Community Investment Tax Relief account) and Just Interest CITR Account are closed to new deposits until further notice.

When Community Investment Tax Relief was introduced in the 2003 Budget, accredited Community Development Financial Institutions (CDFIs), such as Charity Bank, had to comply with specific design features of the tax relief.  

This requires us to lend a specific percentage of the money raised by deposits, within relatively short fixed time limits, in underserved communities and in amounts of up to £250,000.  Only eligible loans that are drawn down could be included in the Annual Returns: we are prohibited from incorporating figures for those which have been granted a loan, but for various reasons may not be ready to access the funds.

So, until the money loaned out matches this percentage of money we have in our CITR accounts, we are unable to take in any more CITR deposits.  This includes the CITR accounts we have set up in association with other charities, including: 

Tomorrow's Vision: in association with Tomorrow's People (launched in celebration of its 20th anniversary).

Streetsmart: in association with Street (UK) Foundation (whose mission is to support financially excluded individuals with tailored financial services, and offer a secure and sustainable pathway out of debt, welfare and cash-economy dependency).

Saving With Grace: in association with Liverpool Diocese (an opportunity for church members to help the work being undertaken in parishes throughout the Diocese, while retaining the capital).

The tax relief system has the potential to unlock really significant sums of money for investment in underserved communities. However, the accreditation terms require redesigning to permit a longer build-up of lending, the inclusion of lending commitments rather than simply drawn loans, and an increase in the permitted amounts we’re able to lend. 

We are discussing these issues and other ideas with the government but if you would also like to see these design changes, which would enable us to reopen the Charity Bank CITRA, why not write to your MP and Treasury Ministers.  One of the deposits team will be able to tell you who to write to. They can be contacted at enquiries@charitybank.org or on 01732 774040.    

In the meantime, please click here if you are interested in finding out details of our other savings accounts, which earn a rate of interest but do not include the element of tax relief.