Switching to a greener bank is one of the most empowering decisions you can make. Not only will you bank somewhere that encourages you to save and simplify life, but your savings are not being used to fund war, animal tests, deforestation, cigarettes or gambling.
Choosing a bank account is not so much about interest rates, but about your own financial power to help the planet.
It’s really easy to switch, and usually you can take your debts with you (or just pay them off at your old bank, you can still switch to a new bank for daily banking).
How to Switch Bank Accounts
The Current Account Switch Service makes switching to a green bank account easy (takes around 10 minutes, and you can even switch with an overdraft). This service is for all personal accounts (including joint accounts).
Just open your account, choose a switch date and let your new bank transfer balance and payments, and the old bank will close your account.
So if you want to change the world from your doorstep, consider simply switching your bank. It’s one small measure, to create the kind of society you want. Communities full of independent shops and social enterprises, or your money going to big banks and war. Which do you choose?
England’s Greenest Bank Accounts
Triodos is based in The Netherlands (with over 750,000 customers across Europe), it has a branch in Bristol, where the phone is answered by real people (not answerphones). The staff are helpful and friendly, and happy customers include wildlife campaigner Chris Packham. We bank there too!
Like most registered banks, you savings are safe for up to £85,000 (or £170,000 for a joint account). This bank also offers offers tax-free savings accounts, plus accounts for charities and business.
Once you switch, your money is used to fund small non-profits and social enterprises, sustainable farming and clean energy. Triodos does not fund fund fast fashion, deforestation, tobacco, fossil fuels (not weapons or ammunition, an important choice in these days).
You receive a regular newsletter (on recycled paper), telling you exactly where people’s money is invested. And you can read stories of those, who your savings have helped.
The bank can be run by phone (app) or online. You receive a recycled PVC debit card (with easy-read numbers), and a cheque book on request. And 24/7 support for lost/stolen cards.
Unlike most banks, Triodos runs on honesty. So rather than send you hidden charges and costs, there is a small £3 a month fee (the cost of a cup of Fair Trade coffee) that goes towards running the account. So you don’t get shocked with a high fee, say for sending you a letter.
The Cumberland (Cumbria) is a regional bank with local branches and an online account. Again it does not invest in fossil fuels, and uses profits to fund environmental and community projects (and gives staff time off for volunteering).
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.
Credit Unions (locally-owned banks)
Credit unions are locally-owned banks, run by and for local people. It’s quite complicated to set one up, but your area likely has one already. Very popular abroad (especially in Ireland), these work very differently to banks.
Your money is still protected (up to around £85,000 or £170,000 for joint accounts) under financial law, and you can still join even if you’re in debt with another bank (get free help from StepChange debt charity).
How Do Credit Unions Work?
Once set up, a credit union is usually set up in a local community shop or school, although larger credit unions have their own branches. Unlike banks, they don’t offer interest. Instead, the more you save, the more dividends you receive at the end of the financial year. And these days, this could end up more than interest from banks.
Credit unions encourage you to save money, rather than to get into debt. So you’ll always find people giving free budgeting advice. And you’re not allowed to borrow money, until you have saved for a few months, proving that the loan would be responsibly paid back.
Under the law, interest rates are strict (and low) on credit unions loans. So say you borrowed £500, you likely would not pay more than £30 or £50 in interest over the entire loan period. Compare that with the banks!
How to Join a Credit Union
It’s pretty simple. Usually you just turn up with an application form and a couple of forms of ID. Some credit unions also let you use a hostel address, if you are homeless.
Once you join, you usually get access to a current and/or savings account. Some larger branches also offer pre-paid debit cards (these can take cash out, but only if you’re not in debt). Credit unions usually don’t offer overdrafts or credit cards.
A few very large credit unions may also offer other services like business loans and mortgages, or even insurance. But overall they are for saving money and rainy day accounts.
‘Common Bond’ Credit Unions
All credit unions operate under a ‘common bond’. This is usually (in England) for people who live in a certain city or county.
Find your local credit union (just type in your postcode)
However, others exist. These are mostly by profession (say people who work for a certain profession or belong to a religion). For example:
Credit Union Loans Help Local People
As noted above, loans are only given out to those who need them, and can pay them back responsibly. In reality, it’s good never to have loans. But if you need one, savings from credit union members go to something worthwhile.
For example, a big bank may charge a fortune on your loan, to then lend the money to arms dealers or animal-testing companies. But a credit union will charge a fair rate. Then lend that money say to fund equipment for a local independent bakery in your community.
So you not only get to save money, but your money helps to fund something that will also benefit you within your community, as well as helping that person build a successful small business.
