Charities Aid Foundation and Scottish Widows Bank have teamed up to launch two new savings products for charities.

CAF Financial Solutions Ltd has unveiled the CAF 90-Day Notice Account, offering a variable rate up to 1.95 per cent AER, and the CAF 1-Year Fixed Term Deposit Account with 1.25 per cent AER.

Charities must have between £10,000 and £5m to deposit. Those that choose the 90-day account will receive interest of 1.7 per cent AER if they have less than £50,000 to deposit, but 1.95 per if they can invest more than that.

From 1 April 2011, BM Savings, the current deposit-taker for the CAF Fixed Rate Selector Account, will no longer provide savings accounts to CAF customers. But they will continue to service existing customers until their accounts reach maturity.