Find the Most Ethical Bank for Your Values and Goals

Choosing an ethical bank aligns with your values and supports your financial goals.

Some banks prioritize environmental sustainability, such as Triodos Bank, which invests in renewable energy projects.

Banks like Co-operative Bank offer affordable banking services to low-income communities.

Consider banks that support social causes, like Vancity, which funds community development projects.

A socially responsible bank is one that prioritizes creating social or environmental good over profit. These banks prove their impact through external certifications or memberships that reflect their lending practices and community investments.

They "look to further economic, social, racial, and environmental justice through their voice, resources, and every aspect of how they operate", according to Ivan Frishberg, chief sustainability officer at Amalgamated Bank.

These banks can go by other names, such as values-based banks and ethical banks, but they all share a focus on social and environmental justice. The term "sustainable banks" tends to emphasize an environmental bent, according to multiple banks.

Some common certifications and memberships of socially responsible banks include:

These certifications and memberships demonstrate a bank's commitment to social and environmental responsibility, and can be a good starting point for those looking to find a more ethical bank.

Certifications provide external proof that a bank is serious about creating a positive impact and minimizing harm to people and the planet. Not every certification requires the same effort level to attain, so look carefully at which ones a bank promotes on its website.

The Certified B Corporation certification is a rigorous process that requires a score of 80 or higher on a 200-point test, and involves background checks, on-site reviews, and re-certification every three years.

To become a Certified B Corporation, banks must score well in five impact areas: governance, workers, community, environment, and customers. Paying all workers a living wage, having a diverse board of directors, and focusing on services that create renewable energy are some practices that can help meet certification.

The Fossil Free Certified certification requires a bank to not finance fossil fuel companies or projects, now or in the future. This is because fossil fuels are the largest source of greenhouse gas emissions from human activities.

Green America Certified banks must have clear policies around where customers' money may or may not be invested, and must not fund certain industries such as weapons and fossil fuels. They must also fulfill a host of requirements across four categories: company, company employment, education, and sustainable facilities.

The Global Alliance for Banking on Values (GABV) is a network of more than 60 banks worldwide that seeks to drive positive change through banking. Member banks must be regulated directly by their government, have a minimum of $50 million in assets, transparency in reporting their business practices, and follow six core principles.

Certifications like these can help customers discover banks that align with their values, and provide accountability to the banks themselves.

There are several types of socially responsible banks, each with its own unique approach to creating a positive impact.

Certified B Corporations are a type of socially responsible bank that has met rigorous standards for social and environmental responsibility. These banks undergo a thorough assessment and must meet a range of criteria, including equal pay for equal work and sustainably powered buildings.

The Global Alliance for Banking on Values (GABV) is another type of socially responsible bank that has committed to offering ethical banking products and treating employees and customers with respect. GABV members undergo a value assessment and receive a scorecard, demonstrating their commitment to ethical banking principles.

Community Development Financial Institutions (CDFIs) are banks that provide affordable banking and credit services to people in economically underserved areas and communities of color. CDFIs are engines of economic development, providing asset-building opportunities and financing for affordable housing and small businesses.

Building societies are a type of socially responsible bank that face stringent regulations limiting their investments in certain industries. Their profits are invested back into the business for the benefit of borrowers and savers, giving them an added edge.

Here are some examples of socially responsible banks that have received certifications or designations:

These banks and credit unions are committed to creating a positive impact and minimizing harm to people and the planet. By choosing one of these socially responsible banks, you can support their mission and values.

Socially responsible banks are committed to creating social or environmental good without prioritizing profit. These banks often receive external certifications or memberships that reflect their lending practices and community investments.

Some notable certifications to look for include Certified B Corporation, Global Alliance for Banking on Values, and Fossil Free Certified. These certifications ensure that the bank meets certain standards for social and environmental responsibility.

Here are some examples of socially responsible banks and their certifications:

These banks and others like them are working to create a more sustainable and equitable financial system.

You can earn competitive interest rates with ethical banks, like Ecology Building Society, which pays 3.15% on its cash ISA.

Their interest rates are comparable to those of high-street banks like HSBC, which pays 2.1%, and NatWest, which pays 1.36%.

On a £5,000 deposit, you might lose £35 a year in interest compared to the best buy, but you'll know your money is helping people and the planet.

Ecology Building Society uses its deposits to fund loans to charities and community businesses, supporting energy-efficient self-builds and renovations, and providing mortgages for community-owned businesses.

With rates steadily rising, now is a great time to move your money to an ethical account and boost your return while helping the planet.

For the sake of a few pounds difference in rate, you can choose to support banks that use your money for good, like Ecology Building Society, which provides mortgages for community-owned businesses and affordable housing.

Ecology Building Society's savings accounts are simple and transparent, and can be accessed online or by post, making it easy to get started with socially responsible banking.

If you're looking for a current account that's as socially responsible as it is convenient, you've got options. Ethical Current Accounts are available, and some of the most notable ones are listed below.

The UK has seen a rise in sustainably-minded current accounts, offering features that benefit both the environment and the community.

One example is the account from a bank that offers a tree-planting scheme for every transaction made. It's a small action that can add up to make a big difference.

Another option is a current account that rewards customers for using public transport or cycling to work. This encourages environmentally-friendly habits and can save customers money on fares.

These accounts are just a few examples of the many socially responsible current accounts available in the UK.

If you're looking for an ethical mortgage option, there are a few routes you can take. Ecology offers the most ethical mortgage for funding an eco build, according to Ethical Consumer's list.

A building society is a great option for an ethical mortgage on a standard house. Ones to try include Skipton, Coventry, Cumberland, or Kent Reliance Building Societies.

Ecology's mortgage is the most ethical on the market for eco builds, making it a great choice for those looking to build a sustainable home.

Choosing a socially responsible bank is a great way to make a positive impact on the world while managing your finances. There are many banks that prioritize social and environmental responsibility, and they're often certified by organizations like B Corp or the Global Alliance for Banking on Values (GABV).

To find a socially responsible bank, look for certifications like B Corp, GABV, or Green America Certified. These certifications ensure that the bank meets certain standards for social and environmental responsibility. For example, Amalgamated Bank is a B Corp and GABV member, and it has a strong commitment to social and environmental justice.

Some socially responsible banks also offer unique features, such as donating a portion of their profits to charity. Reliance Bank, for instance, donates up to 75% of its profits to The Salvation Army International Charity Bank. When choosing a socially responsible bank, consider your values and goals, and look for banks that align with them.

Here are some key questions to ask yourself when choosing a socially responsible bank:

By considering these factors and looking for certifications like B Corp or GABV, you can find a socially responsible bank that aligns with your values and supports positive change in the world.

Women-owned banks are a great option for those looking to support socially responsible banking. They have a majority of ownership or revenue held by at least one woman.

Women-owned banks address the historical exclusion of women from the industry. In fact, the Federal Reserve expanded its definition of MDIs to include women-owned financial institutions in 2021.

These banks help bridge the financial barriers women face when running a business and getting loans. Women face more financial barriers compared to men, including gender pay and wealth gaps.

Senior management positions at women-owned banks are largely held by women, promoting diversity and inclusion in the industry.

Choosing a socially responsible bank is a great way to align your finances with your values. You can rest assured that your money is being used for good.

First, check if the bank is a Certified B Corporation, which means it meets rigorous standards for social and environmental responsibility. This includes equal pay for equal work, sustainably powered buildings, and more.

Look for banks that are members of the Global Alliance for Banking on Values, which assesses their commitment to ethical banking principles. This includes offering transparent investments, donations, and impact.

Some socially responsible banks are also recognized as World's Most Ethical Companies by the Ethisphere Institute, which evaluates companies based on five criteria: ethics and compliance programs, culture of ethics, corporate citizenship and responsibility, governance, and leadership and reputation.

To make an informed decision, ask yourself these questions: Does the bank have a track record of "doing the right thing"? Does it follow good environmental practices and treat people well? Does the bank offer transparency so you can track their investments, donations, and impact? Does the bank put its money into sustainable, non-wasteful projects? And does the bank practice ethics from the top down, with everyone committed to social responsibility?

Here are some stamps of excellence to look out for:

By choosing a socially responsible bank, you can feel good about where your money is going and support a more sustainable future.

Switching to a socially responsible bank can be a game-changer for your money and the planet. These banks prioritize creating social or environmental good without focusing solely on profit, and they often prove their impact with external certifications or memberships.

Certifications like B Corp, 1% for the Planet, and Green America Certified are like badges of honor, showing that a bank is committed to making a positive difference. For example, Aspiration, a fintech, is a B Corp, 1% for the Planet, and Green America Certified bank.

Here are some benefits of switching to a socially responsible bank:

By switching to a socially responsible bank, you can make a statement with your money and support causes that align with your values. It's a way to put your money where your mouth is and contribute to a more sustainable future.

Switching to a socially responsible bank can be a game-changer for your values and wallet.

The money you deposit in a bank doesn't just sit idle, it's used to fund various activities, including loans and investments. This means your money could be supporting projects you don't agree with.

Your bank's involvement in the arms trade and bomb-making is a stark reality. I was surprised to learn about these links too.

Banks also speculate on food prices, driving them up and affecting your grocery bill. This is a concerning practice that affects many people.

Investments in environmentally damaging activities like oil and gas and tar sands mining are a common occurrence in traditional banking. Your money is invested in these activities when you bank with a high-street bank.

According to a 2018 report from Ethical Consumer, this is just the tip of the iceberg.

You might be wondering why you should switch to a socially responsible bank. The truth is, your money isn't just sitting in a vault until you need it.

Banks use the money you deposit in your current and savings accounts to fund their other profit-making activities, which can be pretty unsavory. For example, some high street banks are linked to the arms trade and bomb-making.

It's not just about what you don't want to fund, it's also about what you do want to support. With an ethical bank, you can make active decisions about who you want to trust with your money.

Everybody has different ethical lines, and we don't all care about the same things. But with the rise of ethical banking, consumers can now make more informed choices about where to put their money.

Some people might be concerned about fossil fuel investments, while others might oppose arms dealing or the gun industry. With an ethical bank, you can literally put your money where your mouth is by refusing to support businesses you don't agree with.

The Global Alliance for Banking on Values found that sustainability-focused banks dedicated to supporting economic, social, and environmental impact can actually deliver steady financial returns.

If you're looking to switch to a more ethical bank, you're in luck - it's now easier than ever to make the switch in just seven days. This is a significant improvement from the hassle it used to be.

To choose an ethical bank, consider asking yourself a few key questions. Does the bank have a track record of "doing the right thing"? Does it follow good environmental practices and treat people well? Does the bank offer transparency so you can track their investments, donations, and impact?

You can also look for stamps of excellence such as Certified B Corporations, which undergo regular reviews and recertification every two years. Members of the Global Alliance for Banking on Values also receive a scorecard and commit to offering ethical banking products and treating employees and customers with respect.

Some ethical banks to consider include Charity Bank, Ecology Building Society, and Triodos Bank, which focus on socially and environmentally beneficial projects. Building societies like Coventry Building Society and Leeds Building Society are also a great option, as they are less likely to have investments in controversial industries.

When switching bank accounts, you have the option to choose from ethical banks that focus on socially and environmentally beneficial projects.

Ethical banks like Charity Bank and Triodos Bank prioritize investments in renewable energy generation and reforestation initiatives.

If you're looking to switch bank accounts, consider selecting a building society, which are less likely to have investments in controversial industries.

Building societies like Ecology Building Society and Coventry Building Society can provide reassurance that your money is being used ethically.

You can also look for banks that have a strong focus on sustainability, such as Monzo and Virgin Money.

Some banks, like Nationwide Building Society and Yorkshire Building Society, are part of a larger network of building societies that prioritize ethical banking practices.

Researching and comparing different banks and building societies can help you make an informed decision about which one to switch to.

Switching to a new bank can be a hassle, but now it's a lot less so. You can reliably switch accounts in just seven days.

It used to take a lot longer to switch banks, but that's no longer the case. This is great news for anyone looking to switch to a more ethical bank.

Switching banks can be a big decision, but it's one that can have a significant impact on the environment and the community.