Many high net worth clients are committed philanthropists and due to the complex nature of their financial affairs have to take a strategic approach to their giving. One of the main benefits of the Coutts’ new account, according to the bank, is that users obtain a monthly statement of their donations and so will have figures readily at hand to enable the charity or client to claim any available tax refunds. This streamlining, it is hoped, will help clients make their giving even more effective.

The new account has been launched in response to client feedback, said Mark Evans, head of philanthropy at Coutts, who predicted that every major financial institution will be offering a variation of the Charitable Giving Account in the not too distant future.

“Instead of trawling their bank and credit card statements at the end of each tax year, Coutts clients will be able to see how much they have given at a glance, creating a bigger incentive to reclaim the difference between the higher and basic rates of tax. And what’s more there are no administration fees,” said Mr Evans.

The new service will run in the same way as a regular Coutts account, but is designated solely for payments to charitable causes. Running alongside normal accounts, users of the service are provided with a special cheque book and cash card enabling them to make their donations at any time through the bank’s 24-hour call centre, or online, and there is also a facility to make automatic deposits from their current account.

The Charitable Giving Account, which is only open to Coutts’ clients who are also UK taxpayers, carries a minimum deposit of £500 (around $820).