Reasons to Switch to Greener Bank Accounts
It’s becoming more common to look beyond interest rates and account perks when picking a bank. Many people now think about their carbon footprint and the effect banks have on the planet. The money in your account doesn’t just sit there; banks often invest it in businesses.
Greener bank accounts take a different path. They support ethical, environment-first projects and keep their footprint in mind at every step. If you’re thinking about making a more eco-friendly choice with your money, here are key reasons to switch to a greener bank account.
Switching to a greener bank account takes just minutes using a switching saver, and creates huge changes a ripple effect. These banks are regulated by the Financial Conduct Authority (FCA) and covered by the Financial Services Compensation Scheme. You get all the protection you’d expect from a high street bank, with the bonus of strong green ethics.
Making the change is easier than you think. Most UK banks use The Current Account Switch Service. This handy free service moves your money, direct debits, and standing orders in just seven days. It also covers wages, benefits, and refunds.
Banks Influence Where Your Money Goes
Most high street banks use your deposits to finance a wide range of sectors, including oil, gas, and road-building projects. Greener banks and building societies only invest in ethical businesses and positive projects, like clean energy, healthcare, and education. By switching, you keep your cash away from environmental harm and contribute to more responsible choices.
Encouraging Change Through Collective Action
If plenty of people move their accounts to eco-friendly banks, it sends a direct message to the big players. Consumer choices shape how finance works and what banks support. Every switch helps to shift funding away from polluters to climate-friendly ventures. Your choice counts and inspires others to do the same.
Greener Banks Are Open About Their Investments
Ethical banks have a clear policy on where they put your money. Transparency builds trust, since you know exactly how your savings are being used. Mainstream banks often keep these details vague, making a green account the better pick for anyone who wants to feel good about their money.
Supporting Community and Social Impact
Many eco-focused banks, like Charity Bank and Cumberland Building Society, use savings to offer loans that build stronger communities. These might fund affordable housing, support charities, or back small businesses. By choosing an ethical account, your savings do real good at home as well as for the climate.
Greener Accounts Often Come With Less Plastic
A small detail, but it matters. Several ethical banks supply debit cards made from plant-based materials or recycled plastic. Others work harder to cut waste from statements, mailings, and packaging. These efforts show their promise to reduce harm wherever they can.
Great Customer Service From Values-Driven Teams
Smaller, ethical banks often treat customers like people, not just numbers. They pay attention to fair treatment and open communication, aiming for service that matches their values. If you prefer to talk to real people who care about what you believe, greener banks often lead the way.
Backing Fairer lending and Banking Practices
Banks like Ecology Building Society focus on mortgage lending for sustainable housing, brownfield development, and key worker homes. This fair approach extends to saving products and loan terms. A greener bank’s products avoid risky schemes and focus on long-term benefits for people as well as the planet.
Triodos Bank: Your Money Can Change the World
Triodos Bank is Europe’s main ethical bank, and is headquartered in The Netherlands. However, it has a main branch in England (in Bristol, where calls are answered by real people – yeh!)
Join the already over 740,000 customers who have switched to this bank (including wildlife presenter Chris Packham, who uses his profile to encourage people to bank at a company that uses your money for good. This bank publishes every organisation it finances for transparency.
Just like any other regulated bank, your money is protected for money up to £85,000 or £170,000 (joint accounts) and you can switch in 10 minutes using the Current Account Switch Service. Just open your Triodos Bank account and request the switch in the app (or by phone/online) and the service will securely move your salary, regular payments and direct debits in seven days.
If you’re in debt, you can usually still switch your bank account, while paying off debt at the old bank. So don’t let that stop you switching.
The bank offers a range of accounts:
Ethical Current Account
This is the main bank account which includes a debit card made from recycled plastic. There is a £3 monthly fee, but this is to cover costs, so you don’t get charged for other things, like if banks send you a letter. You can bank by phone or online, and pay in cheques by post.
Your money is used to fund:
- Renewable energy
- Nature restoration
- Social housing
- Small charities
Triodos Bank never funds:
- Fossil fuels
- Fast fashion
- Weapons and ammunition
- Deforestation
You can also use ‘tap to pay’ Google Pay and Apple Pay accounts, download bank statements on the app, and find 24/7 phone support for lost cards or fraud. A cheque book is available on request.
Triodos Bank does not offer:
- Overdrafts
- Interest on current accounts (instead choose savings accounts below)
- Cash deposits in post offices
- Immediate Faster Payments (it does offer CHAPS and international payments for a £20 or £25 fee respectively).
Savings Accounts
- Everyday Savings (save from £1)
- Ethical Savings Bonds (save from £500)
- Online Cash ISA (tax-free from £10)
- Fixed Rate Cash ISA (tax-free from £1)
- Fixed Term Deposit Account (minimum £50,000)
- Business and Charity Deposit Account (minimum £50,000)
Investment Funds
Triodos Bank also offers investment funds, which are hand-picked to ensure they have a positive impact on society and the planet. These are designed to be invested in for at least five years.
All investments go up and down in value over time, so are always a risk, which is why they should be held for the long-term. Investment funds are not covered by the Financial Services Compensation Scheme.
Reliance Bank (helps homeless people)
Reliance Bank Ltd does something special with its profits. Rather than just growing its own business, it shares those profits directly with The Salvation Army. This partnership creates real change for thousands who face homelessness across the UK.
Profits Help The Salvation Army’s Work
Reliance Bank Ltd is wholly owned by The Salvation Army International Trustee Company. Instead of rewarding outside shareholders, the bank gives its net profits to The Salvation Army.
Funding Emergency Shelters and Housing Projects
Thanks to Reliance Bank’s financial support, The Salvation Army can keep its doors open at hostels and life-houses across the UK. These places aren’t just somewhere to sleep.
Backing Services for Rehabilitation and Health
Homelessness is never just about a lack of housing. Many people face addiction and health issues. Salvation Army’s outreach teams, backed by Reliance Bank’s profits, offer support for people struggling with substance abuse, mental health issues and trauma.
Investing in Skills and Employment Programmes
Getting back into work changes lives. Salvation Army job clubs and training schemes, part-funded by Reliance Bank, help people learn new skills, write CVs or regain confidence.
Empowering Local Communities to Help Their Own
Reliance Bank’s profits go beyond top-down charity. Funds help train local volunteers, support church-run drop-ins and supply grants for community projects.
Ecology Building Society (funds green mortgages)
With Ecology Building Society, you’ll find a blend of financial strength, green ethics and genuine care for members. It funds homes and projects that respect the environment and put people first. The Society only backs loans that meet strong eco standards. It’s a way to grow your savings while also helping the planet.
Ecology keeps things simple and easy to understand. You’ll find clear account information, with no hidden charges or unclear small print. You know where your money goes and what you’re getting in return. That makes managing your savings less stressful.
Member-Owned, Not Driven by Profits
Ecology Building Society is owned by its members, not distant shareholders. Any profit the Society makes goes back into its work or helps to improve services. Members have a right to vote on important matters and can attend the annual meeting.
Supports Green Home Improvements
Your money isn’t just loaned to anyone. Ecology supports energy-saving renovations, eco-refurbs and new builds that cut carbon. This might mean helping someone install solar panels or refurbish a draughty older home.
Range of Flexible Options
Ecology offers different types of savings accounts, from easy-access to fixed-term. Whether you want to dip into your cash or lock it away for a while, there’s likely a product to suit your plans.
The Cumberland (a regional bank)
The Cumberland stands out as a bank that puts the environment and local people first. They blend practical banking with heartfelt care for the places we call home.
This regional bank has local branches, and an online account. It does not invest in fossil fuels, and uses profits to fund environmental and community projects. Current accounts include a banking app, Visa debit card and support from the friendly Carlisle team. Choose from a Day2Day Account or one designed especially for young apprentices.
Local Roots With Global Care
The Cumberland started in the Lake District and keeps its main focus in Cumbria. This means decisions happen close to home, by people who understand local needs. They see the beauty and fragility of our region every day.
Fair Mortgages for Greener Homes
The Cumberland offers ‘green mortgages’ with discounts for homes that run efficiently. They encourage customers to pick homes with good Energy Performance Certificates or to upgrade old houses so they save energy.
Banking That Cuts Carbon
The Cumberland reduces their own carbon use in the office. They’ve moved to renewable power, use low-energy lighting and heating, and recycle as much as possible. Staff are encouraged to cycle, walk or use public transport to work, which helps cut local air pollution.
Support for Local Charities and Projects
Many banks give to big national causes, but The Cumberland puts funds back into Cumbrian groups. They support nature reserves, community gardens, and rural charities that restore rivers, plant trees, and make wild spaces safe for wildlife. Your money helps protect the landscape people love.
Training and Volunteering in the Community
Staff get time off for volunteering and tree planting. They help young people find work and support school projects teaching about nature and money.
