Home News Not-for-profit bank raises fixed term rates for savers
Bank consolidates position as having most attractive rates available to savers looking to maximise investment returns
Edinburgh-based Castle Community Bank, a not-for-profit financial institution, has raised its fixed term rates for savers – now offering 1.65% and 1.75% for two and three years respectively for fixed term deposits of up to £15,000.
It says all mainstream ‘High Street’ banks remain under 1% for these fixed term periods and Castle’s interest rate rise consolidates its position as having the most attractive rates currently available to savers looking to maximise their investment returns.
The ethos of Castle Community Bank is to provide new and existing customers with a portfolio of financial products similar to mainstream banks, but with a clear emphasis of putting people before profit. The end goal is to help combat financial exclusion, so that people do not have to rely on pay day lenders and debt at exorbitant interest rates.
From its launch eight months ago, Castle Community Bank now has 1,500 customers and currently has £650k of deposits. It has also advanced around £500k of loans in the last nine months.
According to Rev. Iain May, a former senior executive with RBS and Allied Irish Bank, who helped establish the bank through the merger of two long-established Edinburgh-based Credit Unions, the bank has spiked the interest of affluent young professionals and business people who are looking to gain healthier returns than traditional banking routes now offer.
He said: “March was an extremely busy month for new saver accounts and this clearly bucks the trend of High Street banks undergoing branch closures up and down the country. We now have opened new walk-in branches in the north of Edinburgh and we will be opening more as the bank grows.
“Our digital banking platform has seen a surge in new saver account and loan applications and this, unquestionably augurs well for the future development of this fledgling financial institution unburdened by shareholder dividends, ‘fat cat’ bonuses and significant banking costs.”