Accounts that give interest to charity

hstudent

I notice that Yorkshire BS give the pence of interest on their savings account to charity unless you opt out. Are there any other accounts like that? Maybe some let you choose what charity the money goes to?

Lokolo

Or you could just write a cheque once a year to a charity to the amount of interest you get?

But other than that, I don't know of any such accounts.

YorkshireBoy

Lokolo wrote: »

Or you could just write a cheque once a year to a charity...

Indeed, but be sure to use 'Gift-Aid'.

Lokolo

Tbh I've never really understood the gift aid thing. My mum always said tick the box etc. but I'm not a taxpayer lol. Nevermind eh!

hstudent

Lokolo wrote: »

Tbh I've never really understood the gift aid thing. My mum always said tick the box etc. but I'm not a taxpayer lol. Nevermind eh!

It's assumed that if your a tax payer then you're donating the top taxable part of your income, so the tax is refundable. The government just use a standard 28% rate whatever you tax band is. So if you donate £10, the government add £2.80 to it if you pay tax and request gift aid.

YorkshireBoy

hstudent wrote: »

The government just use a standard 28% rate whatever you tax band is.

It's a bit 'messy' now though, since income tax was cut to 20%.

Basic rate tax is 20 per cent, so this means that if you give £10 using Gift Aid, it’s worth £12.50 to the charity. For donations between 6 April 2008 and 5 April 2011 the charity or CASC will also get a separate government supplement of three pence on every pound you give.

http://www.hmrc.gov.uk/charities/donors/gift-aid.htm

Looks like from 2011 the benefit is down to 25%.

orangeslimes

triodos.co.uk have some...