Switch to a Green Ethical Bank in 10 Minutes
England has quite a few high street banks, but few of them have active screening policies, to ensure that money is not invested in fossil fuels, weapons, animal testing, cigarettes, gambling or pornography. Most tend to just ‘go where the money is’ and therefore your hard-earned cash is funding such things.
It’s very empowering to switch to an ethical bank. It only takes 10 minutes to fill out the details, then you simply wait for the Current Account Switch Service to do the rest. Just give it all your details, and your bank account (including direct debits and standing orders) are all seamlessly transferred to your new bank.
If you are in debt, you can still switch banks, but obviously have to either keep your old account open or set up some kind of payment plan with a debt charity, until it’s paid off. But if that is going to take years, don’t let it stop you from switching to a more ethical bank, as it’s perfectly legal and possible to do so.
This post is for current accounts, read more on savings accounts.
Check banks are 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.
Want to bank on the high street?
Many people still prefer to bank with a ‘real branch’, and as most ethical green banks are only online (or by app), you have fewer choices. But you do have some.
Bank Green says hands-down, the most ethical high street bank is Nationwide, so switch there. Next best is likely Co-op (not as green as it makes out, but it’s better than the rest).
Other options are local building societies (more savings than current accounts) and your local credit union (there are usually small pop-up branches in community shops and schools, and big city credit unions usually have their own offices).
Triodos Bank (Dutch green bank)
Triodos Bank is Europe’s largest ethical bank. Based in The Netherlands, it has a branch in Bristol (where real people answer by phone). The customer service is top-notch and you can bank online or by phone.
You receive a recycled plastic debit card, and get all the advantages of any other bank. Do note that as a small bank that can’t afford the constant automated checks, you may have to sometimes call up to confirm you are not a scammer if you are buying a flat-screen TV!
But actually that’s a good thing, as it ensures the bank is looking after your interests, to make sure you don’t get scammed. And although the account has a small monthly fee of a few pounds, this covers everything. So if you do get sent a letter, the bank won’t charge you £25 to send it.
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 does not offer overdrafts, interest on current accounts, cash deposits in post offices or immediate faster payments (it does offer CHAPS and international payments for a £20 or £25 fee respectively).
So why is Triodos ethical? Because it is very strict about what it won’t invest in (all of the above). And mostly invests in clean energy, organic farming and social community projects. You even can see online every single project it lends to, for transparency.
Reliance Bank Ltd (funds Salvation Army)
Reliance Bank Ltd is run for the benefit of the Salvation Army, a Christian charity that uses its donations to help homeless people (and their dogs). It offers hostels and life-houses, plus help for people who struggle with trauma, mental health issues and substance abuse, as well as teaching people new skills and writing job CVs.
Cumberland Bank (for northern customers)
The Cumberland is only available to people who live in northern England (mostly Cumbria, Northumberland and also southwest Scotland). It’s not a ‘green bank’ per se, but does run ethically. And also uses profits to help reforestation projects (instead of using funds to cause deforestation like many big banks do).
It’s also good in that it has ‘proper branches’ on high streets, ideal for people who prefer to do their banking in person. There are a few accounts including one for everyday use, and another for young people on apprentice schemes.
Monzo and Starling (app-based banks)
Monzo (you can bank by laptop if preferred) and Starling (personal and joint accounts). are the newer app-based banks. Ideal if you have a smartphone and know how to use it, a nightmare if you don’t. But if like most people you do most of your banking online, these fresh new banks have good reviews, are cheap and simple to run, and refuse to invest in fossil fuels.
Zero (a sustainable banking alternative)
Zero is a sustainable alternative to banking, which is basically an app-based account that can be used with contactless pay worldwide, a debit Mastercard (from recycled plastic) and 20% of the company is set aside to do good for the world.
