Virgin Money has launched a new charity credit card which will donate the equivalent of 1% of all spending to good causes.
The Virgin Charity Credit Card will allow users to designate the charity of their choice to receive the funds.
The card, which is Virgin's first product since it gained its banking licence, charges a typical interest rate of 12.9%, and offers a rate of 8.9% for life on balance transfers, on which consumers pay a 2% fee.
It pays cashback of 0.8% of all spending to charities, but after Gift Aid is added automatically - the only credit card provider to do this - it increases to 1%.
The card will go straight to the top of the best buy tables in terms of the proportion of spending it donates to charity, beating the current leading rate of 0.35%, although many charity cards also make donations of up to £25 when the card is first taken out.
Scott Mowbray, spokesman for Virgin Money, said: "The Virgin Money Charity Credit Card is an easy and convenient way to support good causes and the addition of Gift Aid ensures charities get the maximum benefit from donations."
