Now, “ethical” and “banking” may not be words you would naturally put together in a sentence. However, in this post I’ll shine a light on a few of the more ethical and sustainable banks available. We all have a choice when it comes to opting for sustainable and ethical banking, but our choices are not always clear. Money like anything, can be used for good or bad. Money can be a wonderful tool to help us build a better future. We can all have a positive impact on the environment and society without sacrificing wealth and prosperity.
What Is Ethical Banking?
So, you earn your money doing something ethical, you switch to sustainable household brands, donate to charity and try to be more conscious with how you spend your money. But, your bank, ISA, stocks and shares are investing in the fossil fuel industry, arms and major polluting companies- seems contradictory, right? Thankfully there is an alternative way to bank and invest.
Ethical banking means that the bank states whether they give back to the community and, in light of the current UK recession, savers may want to invest with a bank that is supporting others. Triodos Bank financed various projects in 2019, such as in the sustainable energy sector, and its number of customers has grown significantly over the last year. While the Coronavirus pandemic may prove a challenge for any business, the principles with an ethical bank remain the same and now may be the right time to switch.
Make Money And Make A Difference
If you’re saving up you may well be disappointed by the low interest rates on offer by high street banks at the moment, but it’s not all doom and gloom as investing with an ethical alternative, according to the latest research by Moneyfacts.co.uk is on the up.
Moneyfacts data shows that most ethical banking alternatives continue to offer higher returns than high street banks on easy access accounts compared to a year ago. Savers looking for a slightly higher rate can also find ethical brands paying decent returns on notice accounts.
The highest new customer rate for an easy access account from a big bank pays just 0.05% today compared to 0.40% a year ago* but the top ethical brand pays 0.75% today and paid 1.40% a year ago. Ethical banking provider Gatehouse Bank currently pays a highly competitive 0.75% as an expected profit rate on its easy access account, so if you switch, you’d get a better rate and also feel good knowing that you’ve moved to a more ethical bank.
Ethical Banks To Consider
- Ecology BS – A building society dedicated to improving the environment by supporting and promoting ecological building practices and sustainable communities.
- Triodos Bank– Financial and banking services for savers, investors and organisations who want to change the world for the better. Over 700,000 customers are already signed up, making Triodos one of the bigger sustainable banks.
- Gatehouse Bank– Named as the ‘Best Ethical Savings Provider’ at the 2020 Moneynet.co.uk personal finance awards.
Learn More About Sustainable Finance
Switching bank accounts is a big deal, thankfully there is a place to learn more and do your own research before making any decisions. Good Money Week is a campaign to help grow and raise awareness of sustainable, responsible and ethical finance. Giving us a guide to how we can use our money to be green, clean and kind. Good Money Week aims to bring together people from all walks of life and levels of income, financial advisers, charities, faith communities, student groups and financial institutions to help educate about the benefits of sustainable and ethical investment and finance. Learn more about ethical and greener banking options at the Good Money Week website.
Hopefully this post will help to guide you towards choosing a more sustainable and ethical bank, so that your money is making a positive difference to the world.
*Moneyfacts is the UK’s leading independent provider of finance product data. For over 30 years Moneyfacts’ information has been a key driver behind personal finance product decisions.