Why Is Ethical Banking Getting Prominent In The UK?

You have only heard about standard banking methods or techniques in the UK. Something about Ethical Banking? Not a thing and this is entirely new for you. With the term ethical, it means avoiding activities to harm other people or the environment. Around 12 billion pounds is being invested in ethical funds in the UK right now.

If you care about how the bank is using your money, then you must know more about ethical banking. Ethical banking refers to a business model that doesn’t harm the environment or society with rules or regulations or being involved with shareholders or businesses with unethical practices.

This scholarly article is focused on banks that offer current accounts to people who use that money to invest in ethical practices.

What Should You Know More About Ethical Banks?

Ethical banks take positive action on investing in research for renewable energy, helping the poor community, supporting eco-friendly businesses, and transparency. Banks are indeed dependent on our money for investments. If we switch to an ethical bank, then we can indirectly contribute to positive interests for our environment and people.

According to Ethical Consumer’s 29 current account records, they listed the worst and best ethical, friendly banks in the UK. Triodos, ICICI, Co-Op, Metro Bank, Monzo, Yorkshire Bank, Nationwide Building Society, Clydesdale, and Cumberland are ethical, friendly banks. Whereas, Danske Bank, TSB, Citigroup, HSBC, Bank of Ireland, Tesco Bank, and Virgin Money are the worst ethical banks according to their research.

Ways To Choose Ethical Bank For Yourself

To follow into your dream of investing your money into the Ethical Bank’s current account, then you can first research which bank invests in ethical areas and if your bank pays taxes or not. Find out which banks match your dream. Is it investing in fossil fuels, mining, coal, fracking? Or military activity or sustainable banking practices?

You can also take help from the Current Account Switch Service by the Government of the UK. You will not be charged for switching to a different bank and can easily make a switch even if you are an overdraft. You can ask your new bank to move your old account, and your new bank will do the rest of the work.

Do You Have An Idea How The Bank Utilise Your Money?

The money that we keep in our current and savings accounts is invested in different areas such as investment or loans. You might not even know where your money is being funded. Some banks invest your money in low-risk areas where they make money and pay you the interest. They don’t disclose any of such things even if you disapprove of it.

By transferring your bank to an ethical one, you will know where your money is going to be invested in. Some offer to sustainable energy or some to people for building eco-friendly homes. This way, you are investing in a sustainable future.

The top option in Ethical Banking is Triodos Bank which was founded in 1980. It lends its money to only those organizations that positively affect our society and the environment. You get online banking, mobile banking services, overdraft, and debit card.

If you are thinking about opening a savings account, then you can still choose any of the ethical ones whose interest rate is high due to competition. HSBC offers an ISA of 0.1% while the Bank of England provides the same ISA.

You can also take advice from a professional financial investor who can guide you to make the proper ethical investment.

Even if you are looking for loans for young people, then direct lenders have amazing offers where you can get a loan between 1000 pounds to 10,000 pounds in 24 hours. Even if you have a bad credit score, your application can get easily accepted. In addition to it, your credit file will not get affected at all. An average APR is 10.9% on such loans for young adults.

Conclusion

If you want the world to become a better place where you want to make the world sustainable and a safer place for our future generations, then you have to do your bit. Well, there are many ways to do it like using recycle, reuse and reduce as your mantra. Saving energy and using only sustainable means. However, have you ever consider switching to ethical investment or banking?

Also known as sustainable banking, it makes you a better city where your money is being invested or used by the bank to only those places which follow ethical practices and norms.

This way, you are doing your bit in saving society and indirectly contributing to the good cause.

Description: Ethical banking is a new means to save the environment by using the current account where your ethical standards meet with your bank. There have been researches which tells you which bank is ethical and which is worst. Choose yours carefully!

Categories: Business

0 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *