Savers to help vaccinate children

Savers who put money in a new ISA will also be helping to vaccinate children in developing countries worldwide, it has been announced.

In the pre-Budget report last year the Government said it was expanding the investments to be taken out through an ISA to include securities issued by Multilateral Development Organisations.

The new rule change means that the International Finance Facility for Immunisation (IFFIm) will be able to raise money to immunise children in more than 70 of the world's poorest countries.

Savers investing in the ISA will immediately be helping to support the IFFIm's immunisation programme, with money pledged to the organisation from international governments used in order to repay people's initial investments and then in five years to give a fixed return.

For every £1,000 invested more than 130 children will be vaccinated against five different deadly diseases.

The Vaccine Investment ISA is being offered through HSBC and will be available for a limited period between March 2 and April 24.

It aims to provide a fixed return of 16.2% over five years and one month, as well as returning the original sum people have invested, although consumers who want to withdraw their money ahead of the product maturing are likely to get back less than they put in.

IFFIm, which has a triple A rating and is backed by the World Bank, aims to raise £50 million for a vaccination programme being carried out by the GAVI Alliance.

The UK has committed £1.38 billion to the group between 2006 and 2026, with France, Italy, Spain, Sweden and South Africa also promising money.

International development secretary Douglas Alexander said: "The economic downturn could push millions of people into extreme poverty and cause the deaths of up to 2.8 million children.

"Innovative initiatives like this are vital if we are to prevent this financial crisis from becoming a human crisis."