If you’re looking for a green bank that aligns with your personal values of being eco friendly and sustainable, you may want to consider an ethical bank. There are now a number of different ethical banks operating in the UK, each with its own unique ethos and set of products and services. So how do you choose the right one for you?
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What is an ethical bank?
An ethical bank is a financial institution that puts social and environmental responsibility at the heart of its operations. This means that they offer products and services that are environmentally friendly and sustainable, as well as providing assistance to disadvantaged communities.
What are the benefits of using an ethical bank
There are a number of benefits to using an ethical bank, including:
- They offer eco-friendly and sustainable products and services.
- They provide assistance to disadvantaged communities.
- They have strong values and ethics that align with your own.
- They’re often smaller and more community-focused than traditional banks.
- They can offer you a more personalised banking experience.
How do I choose an ethical bank?
There are a few things you need to consider when choosing an ethical bank:. Some of the questions we thought were relevant include:
- What is their ethos? Do they align with your own personal values?
- What products and services do they offer? Are they environmentally friendly and sustainable?
- How big is the bank? Are they community-focused?
- What do other customers have to say about them? Do they have a good reputation?
If you’re still not sure which ethical bank is right for you, don’t worry! There are a number of comparison websites that can help you find the right one
The top five ethical banks in the UK
There are a number of different ethical banks operating in the UK, but here are five of the best:
1. Triodos Bank
Triodos Bank is one of the largest and most well-known ethical banks in the UK. They offer a wide range of products and services, including current accounts, savings accounts, mortgages, and loans. They also have a strong focus on sustainability, and are committed to helping disadvantaged communities.
2. The Ecology Building Society
The Ecology Building Society is a co-operative society that specialises in sustainable banking. They offer a range of products and services, including current accounts, savings accounts, mortgages, and loans. All of their products are environmentally friendly and sustainable, and they’re committed to helping people make more sustainable choices.
3. Monzo Bank
Monzo Bank is a young and innovative bank that offers current accounts, savings accounts, and prepaid cards. They’re well known for their customer-focused approach, and are committed to making banking easier and more affordable for everyone.
4. Unity Trust Bank
Unity Bank is a not-for-profit bank that specialises in ethical banking. They offer a range of products and services, including current accounts, savings accounts, mortgages, and loans. They’re also committed to helping disadvantaged communities and promoting sustainable living.
5. Starling Bank
Starling Bank is a new and innovative bank that offers current accounts, savings accounts, and prepaid cards. They’re well known for their customer-focused approach, and are committed to making banking easier and more affordable for everyone.
Ethical banking
A word of caution about the term ‘ethical banking’. Unfortunately, like all green terms, ‘ethical’ has no clear definition so there is a real risk of ‘greenwashing’. The same applies for the products being promoted as green or ethical. In a recent report,
We are already starting to see mainstream banks advertising their community and environmental credentials. We certainly applaud any efforts they make in divesting from fossil fuel financing but any savvy ethical consumer will put their money elsewhere. Banks that that still invest in oil are:
- HSBC
- Barclayssantander
- Lloyds
- Citigroup
The Co-operative Bank
The Co-operative Bank is a mutual bank that focuses on social responsibility. They offer a range of products and services, including current accounts, savings accounts, mortgages, and loans. They also have a strong commitment to environmental sustainability and community development. However, the bank is now run by a US hedge fund making it unethical
If you’re looking for an ethical bank that’s right for you, these are five great options to consider. Do your research, and find the bank that best aligns with your values and ethics.
Final thoughts
If you need more information, you can check out the comparison websites below:
www.ethicalconsumer.org
www.goodmoneyguide.org.uk
www.bankingonvalues.coop
www.thephonebank.coop/ ethical-banking/
www.moveyourmoney.org.uk/ethical-bank-directory/
