Want to find out who the best ethical banks are in the UK in 2023, for current accounts, ISAs, mortgages, and credit cards? Read on!
I hadn’t really thought about what banks invested in until a few years ago. I just popped my money in the bank, took it out again, and so on. That was that. No thoughts about it, or how ethical the banks might be. Then I found out that how we manage our money can be one of the most impactful environmental things we can do, particularly when it comes to climate change.
Why Should We Switch to An Ethical Bank?
It’s really important to switch to an ethical bank because the money that we deposit into our bank account doesn’t just sit in a vault until we need to withdraw it. Banks use the money we deposit in our current and savings accounts to fund their other profit-making banking activities – from loans to investments. This means, depending on who you bank with,your money could be funding all sorts of projects that you don’t agree with and don’t necessarily know about.
I was pretty uncomfortable when I began to become aware of links with the high street banks to pretty unsavoury things. I learned that the High St banks are linked to the arms trade and bomb-making. Other things I learned were that banks speculate on food prices (pushing prices up) and that they invest in environmentally damaging activities like oil and gas and tar sands mining. And they aren’t just investing their money, they’re investing our money that we deposit in our accounts.
Fossil Fuel Financing
I looked into it more, and between 2015 and 2018 alone, the world’s biggest banks invested $1.9 trillion into fossil fuel financing. Edie reports one of the UK’s worst offenders is Barclays, who have provided £91 billion in funding to fossil fuel companies. This includes companies involved in coal, tar sands, Arctic oil projects, and fracking, as well as the major players in the extraction and use of fossil fuels.
The other is HSBC, which has contributed £67 billion over the same period. Greenpeace also reports that both companies own shares in fracking companies.
RBS has shareholdings in companies that are involved in deforestation due to palm oil. Within these companies are serious workers’ and human rights issues.
HSBC, Lloyds Bank, RBS, and Barclays all lend to companies selling arms to Israel. What’s more, Barclays and HSBC and Barclays both own shares in these companies.
Santander has over 21 subsidiaries in tax havens pointing to unethical tax avoidance strategies.
Between January 2014 and October 2017, Lloyds Bank made $2,986 million available to nuclear weapon-producing companies
Best Ethical Banks for 2023
As banks depend on our money to fund these types of investments and to keep them afloat, one of the ways to change this is to switch to a more ethical bank. Doing so helps to create a fair banking system that works in our interests. Yet surprisingly, 75% of people have never switched current account bank account providers before.
With an increase in UK ethical banks, there’s never been a better time to switch. Here’s my guide to the best UK ethical banks for 2023. From current accounts to savings accounts, and to credit cards and mortgages.
Please note this post does not constitute financial advice and is provided for general information purposes only. I have no commercial relationship with any of the banks or financial products listed here.
Best Ethical Current Accounts
Triodos Bank
Triodos offers an ethical current account. What makes it ethical is that Triodos finances projects based on their social, environmental, or cultural impact. What’s more, refreshingly, they only lend to businesses and organisations that promote or provide long-term positive change. From wind farms to organic farms, to fair trade enterprises, social housing, or community projects, customers are able to see where money has gone and what it’s doing via their website.
Building Societies
Building societies are more ethical than high street banks because they face stringent regulations that limit the amount of money they can invest in certain industries. Their profits are also invested back into the business for the benefit of borrowers and savers rather than shareholders, giving them that added edge.
Building societies that offer ethical current accounts include Cumberland Building Society and Nationwide. Both are ranked fairly high as ethical providers of current accounts by Ethical Consumer, and are great choices if you would prefer your money to be backed by a High St presence.
Challenger Banks
Monzo, one of the so-called app-based Challenger Banks, is currently a good ethical alternative. Monzo does not currently make large corporate loans or investments and therefore does not directly fund industries like the fossil fuel industry. However, it is important to bear in mind that they may do so in the future. I have not been able to find any commitment that says that they will not.
I bank with Monzo and really rate it. Monzo in particular has changed my outlook on money. You can set up ring-fenced savings pots and savings goals within your current account, and their useful app interface gives you much greater control over your money. It’s not hyperbole when I say switching to Monzo has been life-changing.
With the Monzo Premium account, you can even ditch the plastic bank card, and switch to a sleek recyclable metal one instead.
I just wish Monzo could commit to only making ethical investments in the future.
Starling bank says that “one of the key roles of QIA is to reduce Qatar’s dependence on revenues derived from oil and gas and to expand investment into non-hydrocarbon sectors. That’s one reason why it has been investing in a range of well-known British brands in addition to Starling.”
This is a disappointing move from Starling, and as such, I don’t class Starling as an ethical bank.
Ethical Savings Accounts
The ethical savings account market is wider than the current account market. What’s more, there are a lot of great innovative ways to ethically save your money.
As well as the regular building societies, there are some other notable inclusions. It’s important to bear in mind that with these options interest rates are not hugely competitive. This is because they are unable to compete with the Big Five banks (Lloyds, RBS, HSBC, Barclays, and Standard Chartered. These banks own 85% of the banking sector and exert a lot of control. Not that interest rates are in great shape in 2023.
Building Societies
Ecology Building Society saving accounts top the Ethical Consumer’s list of most ethical saving accounts. Ecology provides mortgages for eco homes and similar sustainable developments that have traditionally been difficult to get a mortgage on. This sustainable development is funded through their savings accounts. These accounts are simple and transparent and can be accessed online or by post.
Alternative Banks
If you are looking for an ethical savings account, then Charity Bank is banking with a difference. Not only does the bank lend to charities, but is a charity itself. Don’t worry, it is fully regulated by the FSA meaning your savings are guaranteed. The bank supports 1,000 charities and community organisations, and says it has “improved the lives of 3.5m people”. Transparency is key to the bank. Customers can track where money has gone by following projects it has invested in on the website. They offer various ethical savings accounts for adults.
Ecology, Charity Bank, and Triodos top the ethical league table for Cash ISAs. The building societies are not too far behind on ethics, so don’t be afraid to check out building society offerings.
Ethical Mortgages
If you’re looking for an ethical mortgage to fund an eco build then a mortgage from Ecology is the most ethical on the market according to Ethical Consumer’s list of ethical mortgages. If you’re looking for an ethical mortgage on a standard house then the most ethical option is to use a building society. Ones to try include Skipton, Coventry, Cumberland, or Kent Reliance Building Societies.
Ethical Credit Cards
Until recently I didn’t think you could get an ethical credit card. Then I discovered a wave of mobile-only app-based challenger banks that are beginning to roll out credit cards. This means you are no longer tied to the big banks for your credit needs.
Again, like the challenger banks, these app-based credit card companies do not currently make large corporate loans or investments. They, therefore, do not directly fund industries like the fossil fuel industry. However, it is important to bear in mind that they may do so in the future.
Jaja
Jaja credit cards make credit simple. Their app and online-only banking system is designed to give credit card customers easier access, more control, and greater flexibility.
In order to treat customers fairly and to be a responsible lender, instead of focusing on 0% balance transfer offers, they’ve invested more in their customer experience, product and services. They’ve also focused on the ability to help people better manage their payments and spending.
Tymit
Tymit is a new concept in credit cards. When you purchase something on your Tymit card, you pay back the balance in fixed installments meaning you don’t get stuck in a minimum payment rut that takes years to clear.
At the point of purchase of an item, you select a repayment plan that is affordable to you. You can repay over 3 months, in three fixed monthly installments at 0% APR. Alternatively, if you need longer to pay, you can spread the cost with fixed installments over 6, 12, or 24 months. A transparent cost for each option is shown upfront. And by paying a fixed fee to borrow money, you don’t pay interest on your interest.
Ethical Pensions
As your pension will most likely be in the hands of your workplace, you may have little control over who your pension is invested with, and what it is invested in. If this is the case, then encouraging your workplace to divest to a more ethical pension scheme is your best way forward. The Make My Money Matter is a good starting point to find out more.
If you are self-employed and/or have a personal pension then the good news is you have more autonomy over what you do with your pension. The bad news is that choosing the right ethical pension can be incredibly complicated. Not only do you need to find a more ethical pension company, you then need to find an ethical fund to put your money in.
I would really recommend seeking independent financial advice on this one. This is because as with all investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest.
How Easy Is It To Switch To An Ethical Bank?
If this has inspired you to switch to a more ethical bank then you’ll be pleased to hear that now is a good time to move your money. This is because you can now reliably switch accounts in just seven days. This is definitely a lot less hassle than it used to be.
What do you think? Do you bank with an ethical provider, or would you consider switching banks to a more ethical one?
Do also check out my guide on how to make ethical investments.
CINCINNATI--(BUSINESS WIRE)-- Fifth Third Bank, National Association, today was recognized by Ethisphere, a global leader in defining and advancing the standards of ethical business practices, as one of the 2023 World's Most Ethical Companies. Fifth Third has been recognized four times by Ethisphere.
CINCINNATI--(BUSINESS WIRE)-- Fifth Third Bank, National Association, today was recognized by Ethisphere, a global leader in defining and advancing the standards of ethical business practices, as one of the 2023 World's Most Ethical Companies. Fifth Third has been recognized four times by Ethisphere.
One way to measure this is to assess the bank's sustainability score, in terms of it's contribution to meeting the multifaceted global sustainable development goals.
Of the 10 companies with the most overall complaints, the company with the highest number of disputed responses was Capital One, with 1,044, followed by Citibank and Bank of America. These three credit card companies were also the three companies with the highest number of overall complaints.
These banks and credit unions have earned their reputation as socially responsible through certifications, meaning they would spend your money ethically and responsibly.
MINNEAPOLIS --(BUSINESS WIRE)--Mar. 13, 2023-- For the ninth consecutive year, U.S. Bank has been named one of the World's Most Ethical Companies by the Ethisphere Institute , a global leader in defining and advancing the standards of ethical business practices.
Which is the hardest investment bank to get into? Goldman Sachs is notoriously difficult to get into. One statistics recently rolled out was that it received 100,000 applications for just 2,300 global internship positions. This means that it received 24 applications for every job it posted.
Bank of America, Citibank, Union Bank, and HSBC, among others, have created accounts that come with special perquisites for the ultrarich, such as personal bankers, waived fees, and the option of placing trades. The ultrarich are considered to be those with more than $30 million in assets.
Following one of the most successful years in United's long history, United Bank has been named the Most Trustworthy Bank in America by Newsweek for 2023. Across 23 industries evaluated, United joined the list of the “Most Trustworthy Companies in America,” earning the No. 1 spot in the Banks category.
As of September, 2022, HDFC Bank has approximately more than 1.70 crore active credit cards and thus it is regarded as the largest card issuer in the country.
Always use your credit card instead of your debit card. If hackers break into retail databases, debit cards give direct access to your banking account. A thief's least favorite credit card is American Express because it asks for a zip code to finalize a transaction.
The Lifestory Research 2022 America's Most Trusted® Bank Study found Chase the most trusted bank. The America's Most Trusted® Study is a large-scale survey of consumers in the United States that seeks to identify the brands that people trust the most within their respective industries.
Central banks. Central bank of the year: The National Bank of Ukraine won the award after a dramatic effort by its staff to cope with the impact of the war and keep the economy functioning.
Asset-heavy, diversified and regulated banks like JPMorgan Chase, Wells Fargo, PNC Bank and U.S. Bank are among the safest banks in the U.S. and should be considered if you are weighing your options.
Silicon Valley Bank is the fastest-growing bank with 49.5% year-over-year growth. Signature Bank and Western Alliance Bank round out the top three fastest-growing banks with year-over-year gains of 40.9% and 36.9%, respectively.
Capital One: Best for Overall Customer Satisfaction
Statista recently provided a research report on the banks with the highest overall customer satisfaction rates, scoring every large bank in the United States out of 1,000 points. Capital One came in first place with 694 points.
PPBL continues to be India's most successful payment bank and a comprehensive platform of funding sources. Besides 100 million UPI handles, there are 300 million wallets, 220 million saved cards and 55 million bank accounts on the platform.
Last year, Ethical Consumer magazine gave the Chase current account a “red” (worst) rating due to its poor record on the the environment as well as on financial issues such as director pay and tax avoidance. The not-for-profit co-operative gave a recommendation that Chase is a “brand to avoid”.
An ethical bank is socially responsible and practices values-based banking, promoting a sustainable future. An ethical bank does not lend money to fossil fuel companies and the coal and gas sector. An ethical bank's operations do not extend to deforestation, animal cruelty, and weapons.
Our research highlights how HSBC invests in companies linked to deforestation, fossil fuels, arms & military supply, nuclear weapons and the Myanmar military. It has the worst gender pay gap of any UK bank, pays excessive compensation to executives, and scored a worst rating for Tax Conduct.
Mobile banking, artificial intelligence and chatbots, open banking, and cryptocurrency are just a few of the digital banking trends reshaping the industry. Personalized banking, augmented reality, voice banking, and cybersecurity are set to shape the banking industry in the coming years.
Many millionaires keep a lot of their money in cash or highly liquid cash equivalents. They establish an emergency account before ever starting to invest. Millionaires bank differently than the rest of us. Any bank accounts they have are handled by a private banker who probably also manages their wealth.
The top 1 percent of earners have a median balance of $1.13 million across various types of banking and retirement savings accounts. When you look at the average account balance, that number is even higher: $2.5 million.
Wells Fargo is a repeat offender that has been the subject of multiple enforcement actions by the CFPB and other regulators for violations across its lines of business, including faulty student loan servicing, mortgage kickbacks, fake accounts, and harmful auto loan practices.
In October of 2022, nineteen states launched an investigation into JPMorgan Chase, Citigroup, Wells Fargo, Bank of America, Morgan Stanley, and Goldman Sachs' involvement in the United Nations Net-Zero Banking Alliance (NZBA).
1. JPMorgan Chase & Co. Established in 1799, JPMorgan Chase & Co. is a global investment bank and financial services company that's based in New York. It offers a wide range of banking products including deposit accounts, credit cards, home loans, auto loans and business banking.
Bank of America main competitors are Merrill Lynch, American Express, and Bank of the West. Competitor Summary. See how Bank of America compares to its main competitors: Wells Fargo has the most employees (268,531).
Smile's fee-free Classic credit card comes with 0.25 per cent cashback on all spending. Smile is owned by the Co-operative Bank, and shares its Ethical Policy.
At Capital One, we share a proud commitment to upholding the highest standards of professional ethics. Our Code of Conduct (Code) reflects our core values of Excellence and Do the Right Thing.
What Credit Card Do the Super Rich Use? The super rich use a variety of different credit cards, many of which have strict requirements to obtain, such as invitation only or a high minimum net worth. Such cards include the American Express Centurion (Black Card) and the JP Morgan Chase Reserve.
Last year, Ethical Consumer magazine gave the Chase current account a “red” (worst) rating due to its poor record on the the environment as well as on financial issues such as director pay and tax avoidance. The not-for-profit co-operative gave a recommendation that Chase is a “brand to avoid”.
Since 2017, we have procured 100 percent of the electricity we use from renewable sources. We established landfill waste and water reduction targets and committed to pursue U.S. Green Building Council Certification of LEED Silver or higher for all new office locations and comprehensive renovations.
Your payment history accounts for 35% of your credit score. Paying at least the minimum amount on your credit card each month is a good way to build (or maintain) a good credit score. Paying on time will also help you avoid getting slapped with fees.
Capital One is a subsidiary of Capital One Financial Corporation, a U.S.-based bank holding company headquartered in McLean, Virginia and founded in 1994.
Topline. Capital One Cofounder and CEO Richard Fairbank has been ordered to pay a $637,950 civil penalty to settle charges he violated antitrust laws by repeatedly failing to report stock transactions associated with his compensation package over the past two decades, the Federal Trade Commission announced Thursday.
The rarest credit card in the world is likely the Centurion® Card from American Express, also known as the “Black Card.” This card is available by invitation only, and you will reportedly need to spend at least $250,000 per year on other Amex credit cards and have an income of $1 million+ to get it.
The Amex black card gets you free access to more than 1,400 airport lounges around the world, including Amex Centurion Lounges, Delta Sky Clubs when you're flying Delta, and Priority Pass airport lounges**. You can sit back and relax on the comfortable chairs while indulging in some good food and drinks.
If your goal is to get or maintain a good credit score, two to three credit card accounts, in addition to other types of credit, are generally recommended. This combination may help you improve your credit mix. Lenders and creditors like to see a wide variety of credit types on your credit report.
Chase Bank is rated 4.0 out of 5.0 stars by independent customer review site Trustpilot, based on over 4,600 reviews. Many of the positive reviews mention the cashback rewards as a reason for signing up and lots of reviews reveal how the round-up feature helps them to save.
Address: 2033 Gerhold Pine, Port Jocelyn, VA 12101-5654
Phone: +8524399971620
Job: Central Manufacturing Supervisor
Hobby: Jogging, Metalworking, Tai chi, Shopping, Puzzles, Rock climbing, Crocheting
Introduction: My name is Edmund Hettinger DC, I am a adventurous, colorful, gifted, determined, precious, open, colorful person who loves writing and wants to share my knowledge and understanding with you.
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