Jasmine Birtles
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Forget ISAs! This Account Could Earn You More (And It Helps Communities Too)
Ruby Layram
1st Dec 2025
**Advertorial**
If you’re a saver who loves the idea of getting a great return without taking on big risks, and you like the thought of your money doing something genuinely good in the world, then this is one of the most interesting accounts you’ll see this year.
While everyone else is fretting about the ISA allowance being cut, or hunting for yet another “best buy” savings table, a growing number of savvy savers are quietly turning to a little-known income tax break from HMRC that could earn them the equivalent of up to 7.57% interest per year.
And the best part? Your money helps fund vital UK charities at the same time.
The account that I’m talking about is the Community Investment Tax Relief (CITR) Base Rate Tracker Account from Charity Bank.
Here’s everything you need to know about this excellent opportunity and how to get started.
What is The Community Investment Tax Relief (CITR) Base Rate Tracker Account
This isn’t just a savings account, it’s a clever blend of:
Income tax relief + a variable savings interest rate + full FSCS protection + a positive impact on real UK communities
By using the CITR scheme, savers can currently earn the gross equivalent of:
- 5.44% (basic rate taxpayers)
- 7.00% (higher rate taxpayers)
- 7.57% (additional rate taxpayers)
These figures combine your savings interest plus the value of the tax relief you can claim, which is what gives the account such attractive total returns.
This assumes full tax relief is claimed, current Bank of England base rate, and no Personal Savings Allowance. Actual returns will vary depending on your tax status and future interest rate changes.
Review Charity Bank’s Scheme Details & Summary Box for full details and worked examples of potential returns before applying.
How the Tax Relief Works (Explained Simply)
This scheme has been around for years, but hardly anyone knows about it.
Here’s how it works:
- When you open a CITR account, 75% of your deposit qualifies for tax relief.
- You can claim 5% of the deposited amount each year, for five years.
- That adds up to 25% tax relief in total.
- Meanwhile, your full deposit earns interest at a variable rate (currently 0.75% gross/AER).
For many taxpayers, this works out better, much better, than a traditional cash ISA.
The CITR account sits completely outside the £20,000 annual ISA limit, and provides an additional way to mitigate tax.
Is My Money Safe?
Yes. Charity Bank is a fully regulated UK bank with its own banking licence. This means eligible deposits are protected up to £120,000 under the Financial Services Compensation Scheme (FSCS). This is the same level of protection you get with high-street banks.
So you can do good and sleep well at night.
How Your Money Helps…
Every pound that you save helps fund UK charities and social enterprises working on huge challenges such as:
- Affordable housing
- Mental health support
- Children with additional needs
- Community health centres
- Projects supporting vulnerable families
Here are just a few examples of the causes that you could help:
Strength & Learning Through Horses
Helps young people facing mental health challenges through equine therapy. A Charity Bank loan helped them relocate and expand — now supporting up to 1,000 young people each year.
Ruby’s Fund (Cheshire)
A lifeline for children with special educational needs and disabilities. When their landlord sold their building, Charity Bank’s loan helped them secure a permanent home.
Head2Head Theatre (South East England)
Creates multi-sensory theatre for disabled children. Charity Bank’s support allowed them to purchase a permanent base and expand their reach.
When you save in this account, you’re helping organisations like these to grow and continue their work.
What You Need to Know
Here are a few key details that you need to know before you put any money on the line!
- Minimum deposit: £5,000
- Term: 5 years (to receive full tax relief)
- Interest: Tracks the Bank of England base rate minus 3.25% (currently 0.75% gross/AER)
- Tax relief: Claim 5% per year of 75% of your deposit (total 25% over 5 years)
- Eligibility: UK taxpayers only
- Protection: FSCS up to £120,000
It’s a brilliant option for savers who want to earn a strong return without chasing risky investments.
Who This Account Is Ideal For
This account is worth considering if you:
- Are a UK taxpayer over 16-years old
- Have at least £5,000 to tuck away for 5 years
- Want a strong, tax-efficient return
- Like the idea of your money doing something meaningful
- Don’t want stock-market risk
- Want an alternative to your ISA allowance
- Seeking FSCS protection
Higher-rate and additional-rate taxpayers in particular can see very attractive total-equivalent returns.
Final Thoughts
If you’d like to take advantage of the CITR scheme and help fund amazing community projects across the UK, you can find out more and apply here.
This could be one of the most rewarding (financially and socially) places to put your savings in 2025.
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Disclaimer: The Charity Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. This information does not constitute tax advice; please seek independent advice. Available to UK taxpayers only. Tax relief is subject to HMRC rules and may change. Relief must be claimed via your tax return.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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