Investors tend to think about their long-term savings and charitable giving separately – but one option brings them both together.Step forward charity bonds, a different form of investing that is secure, regulated and can be highly rewarding.Charity bonds offer generous annual returns, they are listed on the London Stock Exchange and the proceeds are used to fund good causes.The latest bond exemplifies the breed, offering annual interest of 7.5 per cent – higher than even the most generous savings accounts. It has been launched by Belong, a charity that has developed new ways of looking after older people.Founded in 1991, Belong was an early pioneer of community-focused care for the elderly, creating ‘villages’ that offer wide-ranging support for residents and local people alike.Each village includes six houses, with about a dozen en suite bedrooms, leading into communal kitchens and living spaces. Designed to feel like proper homes, these cater for residents in need of 24-hour care.Villages include apartments for senior citizens who want to live more independently, as well as cafes, gyms, beauty salons, gardens open to the public and residents and even a nursery.Headquartered in Nantwich, Cheshire, Belong operates eight villages, with a ninth coming on stream this year. No village is more than 50 miles away from HQ so the board can keep a close eye on proceedings and ensure effective oversight. Charity bonds offer generous annual returns and are listed on the London Stock Exchange, with the proceeds used to fund good causesBelong is hoping to raise £22million from the bond issue, using the cash to repay old debts, maintain villages and potentially build new ones. The group derives its income primarily from residents, around two-thirds of whom finance their own care, with the rest funded by local authorities or the NHS.As a charity however, Belong ploughs all surplus income back into the villages and no one is ever turfed out if they can no longer afford the fees.Belong will pay interest on June 18 and December 18 every year so an investor with £1,000 of bonds will receive £37.50 every summer and winter until the bonds mature in 2033.Investors can apply for bonds through AJ Bell, Hargreaves Lansdown and Interactive Investor or through independent stockbrokers, such as Charles Stanley or Killik and Co. The minimum application is £500 and the offer period runs until Friday, June 12, though most brokers are asking for applications by close of play on Thursday. The bonds are eligible for Sipps and Isas and are expected to list on the Stock Exchange on June 19.Belong’s bond is the latest of several arranged by Retail Charity Bonds (RCB), an organisation set up to marry charities’ need for funds with investors’ desire to earn returns and do good.Run by a team of bond market veterans, RCB conducts analysis on every charity that wants to come to the market, turning away any that fail to meet the required criteria. Such detailed research is critical because RCB needs to be confident that charities can pay annual interest when it falls due and repay investors when the bonds mature.Issuers include care home operators, housing associations and even Alnwick Garden Trust, part of Alnwick Castle in Northumberland. Interest rates vary, depending on when the bonds were launched but bonds are almost always issued at 100 per cent of their value, which means that if an investor buys £1,000 of bonds, they will pay £1,000 for them and receive £1,000 back when the bonds mature. Belong, a charity that has developed new ways of looking after older people, is looking to raise £22million from the bond issueMost investors keep their bonds until that time but do not have to, as all the bonds are traded daily on the Stock Exchange – and Belong bonds will be, too. Prices vary according to how close the bonds are to maturity, how popular they are and prevailing bank interest rates. Disability care group, Golden Lane Housing, for instance, launched a ten-year bond in 2021, paying interest of 3.25 per cent.Daily bond prices tend to fall if bank interest rates are rising so today, investors can buy Golden Lane bonds valued at £1,000 for just £875.They will earn less interest than on the Belong deal but, if they keep the Golden bonds until 2031, they will make £125 on every £1,000 of bonds they own and there is no capital gains tax to pay.Investors who bought Golden Lane bonds at launch would receive less than they paid for them if they sold now.Contact: rcb-bonds.com