Summary
The way we offer CITR accounts has changed.
Key changes;
- One account to apply for to be opened that covers tax relief and savings interest.
- 75% of total funds placed into a CITR account are eligible for tax relief.
- 100% of the total funds place into a CITR account are eligible to receive savings interest.
- The savings interest payable tracks 3.25% below the prevailing Bank of England Base Rate for the duration of the account being open.
- Minimum investment £5,000. Maximum without pre-approval £500,000.
What's the same;
- Available to individuals aged over 16-years old who are tax resident in the UK.
- CITR capacity is limited availability and offered on a first come first served basis.
- Funds need to be invested for minimum 5 years to obtain maximum tax relief.
- Savers can claim Income Tax relief of up to 5% of the eligible amount saved each tax year, starting with the year in which the investment is made and the four subsequent tax years thereafter. This gives a total tax relief of up to 25% of the amount saved.
See our CITR Base Rate Tracker - Scheme Details & Summary Box document for full details.
CITR - Base Rate Tracker Account
| CITR Period | Tracking Rate* | Income Tax Relief** |
|---|---|---|
| 5-years | 3.25% below BOE base rate | 5.00% per annum |
You can monitor the Bank of England base rate on its website.
*The savings interest payable tracks 3.25% below the prevailing Bank of England Base Rate for the duration of the account being open, but will not fall below 0.00% if the base rate falls below 3.25%. Currently this results in 2.00% gross / 2.02% AER interest being paid.
Gross is the interest rate without tax deducted. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.
**Please refer to our CITR Base Rate Tracker - Scheme Details & Summary Box for full details and worked examples of potential returns to savers. Minimum and maximum returns for each income tax banding are shown below along with those for corporation tax payers. These examples below are based on the current Bank of England base rate of 5.25%.
- Basic rate tax: 4.69% to 6.69%
(subject to an individual’s utilisation of their personal savings allowance)
- Higher rate tax: 6.25% to 8.25%
(subject to an individual’s utilisation of their personal savings allowance)
- Additional rate tax: 6.82% to 8.82%
(no personal savings allowance)
- Corporation tax: 5.00% to 7.00%
(Main rate of 25% used)
UK tax legislation, which may be subject to change, may have an impact on your personal tax position.
| CITR Period: | Five Years. |
|---|---|
| Minimum deposit: | £5,000. |
| Maximum deposit: | £500,000.00 (dependent on available CITR capacity). |
| Number of account holders: | One, due to this being a tax relief product. |
| Paying money in: | Initial deposit(s) can be made by cheque or electronic transfer from your nominated account only. From the day we confirm your account is open you have 14-calendar days to fund it with one or multiple deposits up to a maximum account balance of £500,000 or in excess of this limit if pre-approved by us. If your account is not funded to the minimum account balance of £5,000 within this period, it will be closed, and any funds returned to you. No further payments permitted once the funding period has ended. |
| Payment of interest: | Interest will be paid gross. If the total amount of interest you receive in any tax year exceeds any Personal Savings Allowance to which you’re entitled, you may have tax to pay at the applicable rate. This would need to be paid directly to HMRC. For more information, please visit gov.uk and search for ‘Personal Savings Allowance’. |
| How we calculate interest: | Interest is calculated daily and added to your account quarterly in March, June, September and December. |
| What would the estimated balance be after 12 months based on a £5,000 deposit and a £100,000 deposit? | Based on an interest rate of 2.00% gross / 2.02% AER (5.25% base rate), the estimated balance on a £5,000 deposit after 12 months would be £5,100.75. The estimated balance on a £100,000 deposit after 12 months would be £102,015.05. These illustrative examples assume no withdrawals, no changes to the Bank of England base rate over the period and interest is paid and compounded quarterly. (The illustrative examples do not take into account the individual circumstances of a saver.) Please note savings interest would form part of the overall return for savers and needs to be factored alongside tax relief as shown in our 'worked examples'. |
| Withdrawals: | To obtain maximum tax relief the funds must be held in an account for a period of 5-years. No withdrawals are permitted for the first 3 years. Up to 25% can be withdrawn in Year 4 and up to 50% withdrawn in Year 5, upon 91 days written notice. Any funds being withdrawn must be credited to your nominated account. |
| How does the Income Tax benefit work? | For example if a saver put £15,000 into a CITR Base Rate Tracker Account on 18th April 2024. The eligible amount for each tax year for which relief may be claimed is £11,250 (75% of £15,000), which would means tax relief of £562.50 (5% of £11,250) may be claimed for the tax year 2024/25 (the tax year in which the saving was made) and for each of the four subsequent tax years. (UK tax legislation, which may be subject to change, may have an impact on your personal tax position.) Please note tax relief would form part of the overall return for savers and needs to be factored alongside any savings interest as shown in our 'worked examples'. |
| Managing your account: | Once opened, you can manage your account by post, email and telephone, with our friendly UK based Savings team, who are always willing to support you. Currently we do not offer internet banking once your account is open. |
| What happens upon the expiry of the tax relief certificate? | We shall write to you ahead of the certificates' expiry date with options available to you at the time. |
- Access: Available to individuals who are tax resident in the UK. Open an account with a minimum £5,000.
- Return: Your savings will benefit from interest tracking 3.25% below base rate and 5% income tax relief from the tax year of investment and four subsequent tax years.
- Social impact: Your money will be used to support charities and social enterprises across the UK.
- Ready to start saving? Find out where your money goes
- You may apply online. You will need to print an Application Summary at the end of the online process to sign, print and return to us. Alternatively you can apply by post.
- Your eligible deposits with Charity Bank are currently protected up to the limit of £85,000 under the Financial Services Compensation Scheme.
- If you are looking to place deposits greater than £500,000, please contact our Savings team by phone: 07132 441944 or by email: enquiries@charitybank.org.
- To view our full Terms for Personal Savers click here.
For all Charity Bank savings documentation including historical/current interest rates, terms for savers, and application forms, please visit our documents library.
- Getting started. Once your account is opened and funded, we'll send you confirmation of your account details, and provide a tax certificate covering 5 tax years to enable you to claim your tax relief.
- Your impact. You’ll receive annual bank statements with a twist: you’ll see how your savings have grown and you’ll learn about some of the organisations your savings have supported.
- Staying in touch. Call or email us directly to check your account details and rates or if you have any questions.
- t: 01732 441944 e: enquiries@charitybank.org
Protecting your money
Ready to start saving?
Explore our other accounts
Community Investment Tax Relief Base Rate Tracker (Personal) Account
- Available to individuals who are tax resident in the UK.
- Make a positive difference to disadvantaged communities across the UK.
- Interest tracks 3.25% below Bank of England base rate and is currently 2.00% Gross / 2.02% AER on 100% of the amount saved.
- Additionally, there’s 5.00% tax relief p.a. on 75% of the amount saved.
Ethical 33-Day Notice Account
- Make your savings work for charities and social enterprises
- 2.97% / 3.00% - 3.12% / 3.16% Gross/AER*
- Individuals who are permanently resident in the UK
Ethical 93-Day Notice Account
- Make your savings work for charities and social enterprises
- 3.00% / 3.03% - 3.15% / 3.19% Gross/AER*
- Individuals who are permanently resident in the UK
Ethical 1-Year Fixed Rate Account
- Lock your money away and support the unsung heroes in our communities
- 4.51% Gross/AER*
- Individuals who are permanently resident in the UK and only liable to pay tax in the UK
Ethical 3-Year Fixed Rate Account
- Lock your money away and support the unsung heroes in our communities
- Up to 4.06% Gross/AER*
- Individuals who are permanently resident in the UK and only liable to pay tax in the UK
Ethical 33-Day Notice Cash ISA
- An account that makes your savings work for good
- 3.01% Gross/AER*
- Individuals who are permanently resident in the UK
Community Investment Tax Relief Base Rate Tracker (Business/Credit Union) Account
- Available to organisations liable to pay corporation tax in the UK.
- Make a positive difference to disadvantaged communities across the UK.
- Interest tracks 3.25% below Bank of England base rate and is currently 2.00% Gross / 2.02% AER on 100% of the amount saved.
- Additionally, there’s 5.00% tax relief p.a. on 75% of the amount saved.
Ethical 40-Day Notice Business Account
- 40-day notice period
- Available to businesses
- 3.11% / 3.15% - 3.26% / 3.30% Gross/AER*
- Higher interest rates apply to higher balances
Ethical 100-Day Notice Business Account
- 100-day notice period
- Available to businesses
- 3.14% / 3.18% - 3.29% / 3.33% Gross/AER*
- Higher interest rates apply to higher balances
Ethical 1-Year Business Fixed Rate Account
- Available to business savers
- 4.51% Gross / AER*
Ethical 3-Year Business Fixed Rate Account
- Available to business savers
- 4.06% Gross / AER*
Ethical 40-Day Notice Charity, Trust and Unincorporated Association Account
- 40-day notice period
- Available to charities, trusts and unincorporated associations
- 3.11% / 3.15% - 3.26% / 3.30% Gross/AER*
- Higher interest rates apply to higher balances
Ethical 100-Day Notice Charity, Trust and Unincorporated Association Account
- 100-day notice period
- Available to charities, trusts and unincorporated associations
- 3.14% / 3.18% - 3.29% / 3.33% Gross/AER*
- Higher interest rates apply to higher balances
Ethical 1-Year Charity, Trust and Unincorporated Association Fixed Rate Account
- Available if you are a UK registered charity or trusts or unincorporated association (club or society)
- 4.51% Gross / AER*
Ethical 3-Year Charity, Trust and Unincorporated Association Fixed Rate Account
- Available if you are a UK registered charity or trusts or unincorporated association (club or society)
- 4.06% Gross / AER*
Ethical 1-Year Credit Union Fixed Rate Account
- Available to credit unions
- 4.51% Gross / AER*
Ethical 3-Year Credit Union Fixed Rate Account
- Available to credit unions
- 4.06% Gross / AER*
Ethical 100-Day Notice Credit Union Account
- 100-day notice period
- Available to credit unions
- 3.14% / 3.18% - 3.29% / 3.33% Gross/AER*