A special savings account set up to raise money for the Birmingham Children's Hospital Red Balloon Appeal has smashed through the £10 million mark, with thousands of Brummies investing to help raise money for the hospital.

About 3,000 savers have put a total of £11.25 million into the savings account at the West Bromwich Building Society since the scheme was launched in May earlier this year.

One per cent of the money saved in the "affinity" accounts will be donated at the end of the financial year to the appeal, which is looking to raise £19 million to pay for a new burns unit at the hospital on Steelhouse Lane.

And the campaign now needs just £250,000 to reach its target of £3 million raised for the new unit.

"It's going up at the rate of about £400,000 a week," said a West Bromwich spokesman. "We've already raised more than £100,000 for the appeal and by the time the end of the year comes, it's going to be much more.

"People are drawn to the account by a combination of the cause and the excellent rate, and a real desire by the people in Birmingham and the West Midlands to get behind the Children's Hospital."

The savings account offers investors a competitive rate with a bonus of 0.75 per cent on all deposits made, as well as topping up the appeal's coffers with the one per cent bonus.

The £19 million new burns centre at the children's hospital will treat half of all the severely burned children in the UK. The appeal was launched to raise £3 million towards building the unit.

The appeal has been supported by a number of drives in the city over the past year.

In July, former Swap Shop and Cheggers Plays Pop television presenter Keith Chegwin held a special It's a Knockout competition in Kings Heath, raising nearly £20,000 for the appeal.

In the same month teams put together by a children's charity held a sedan chair race around Victoria Square.

And in October, former Black Sabbath, ELO and The Move drummer Bev Bevan organised the Brum Rocks concert in aid of the appeal.

Local legends like Jasper Carrott played at the mini-festival, the first to be held at the refurbished Town Hall.

And Led Zeppelin singer Robert Plant appeared to give a performance with his band before jetting off to Los Angeles the same night.

Staff at the West Bromwich have been raising money for the appeal themselves after nominating it as their preferred workplace charity.

"What we do each year is to set a target of raising £25,000 for the chosen staff charity, and we've already reached £26,000 this year," said the West Bromwich spokesman.

Barbara Welford, the campaigns manager for the Red Balloon Appeal, said: "It's a fantastic example of how a company can work with a charity for mutual benefit. It's such an innovative idea - everyone is a winner."