Ethical Banking

jojoach

I would like to change my bank account from RBS to a bank that does not pay huge bonuses and actually works for the benefit of the customer.

Does such a bank exsist???

opinions4u

No.

Next.

Rafter

Yes. Kind of.

There are 3 or 4 'mutual' current account providers who are owned by their customers and who therefore should be motivated by good service and value for money rather than making the most profit for staff and shareholders.

Nationwide Building Society

Co-operative Bank/ Smile

Coventry Building Society

Norwich and Peterborough Building Society


With all 4 your current account balance and/or savings will be used primarily to lend to other customers as mortgages. As such they are 'ethical' in that your money won't be lent to companies whose ethics you might not agree with - for example Arms or Tobacco firms.

Good luck

R.

opinions4u

Rafter wrote: »

Nationwide Building Society

Their treatment of savers in recent years has been poor.

Co-operative Bank/ Smile

Significant lenders to business and the wider co-operative movement, thus indirectly funding the Labour party.

Coventry Building Society

Don't know enough about them, so you could be on to something! Although I think their ownership of Stroud & Swindon includes some dodgy buy to let lending.

Norwich and Peterborough Building Society

Financially exposed to the Self-Trade (?) collapse.

I'm not saying your examples are necessarily poor in the context of the wider industry. But I am a great believer that individuals should seek out the best balance of value and service that suits their needs. Buying in to an "ethical" stance is invariably going to be nothing more than buying in to a marketing message.

ironlady2022

OP has clearly stated he wants to move bank accounts and is after solutions not unhelpful advice. Agree with Rafter, I would go with Coop.

CLAPTON

jojoach wrote: »

I would like to change my bank account from RBS to a bank that does not pay huge bonuses and actually works for the benefit of the customer.

Does such a bank exsist???

I don't know of any that meet that criteria although it does depend upon what you mean by 'ethical' and what you mean by 'benefit of customers'

all the building societies and co-op have a long history of poorly paying a/cs;
deliberately introducing complicated a/cs designed to confuse,
have lots of a/cs that have 'bonuses' that run out and then offer very low interest rates etc etc

CLAPTON

mayling03 wrote: »

OP has clearly stated he wants to move bank accounts and is after solutions not unhelpful advice. Agree with Rafter, I would go with Coop.

lets see
acording to their website

some interest rates:-
smart saver 0.25%
cash ISA 0.5%
fixed deposits range from 2.78 to 3.75% depending upon term
privileged .. 1%


etc etc

I'ld rather be with an 'unethical' bank that doesn't care about it's customers

opinions4u

mayling03 wrote: »

OP has clearly stated he wants to move bank accounts and is after solutions not unhelpful advice. Agree with Rafter, I would go with Coop.

That''s why I said "individuals should seek out the best balance of value and service that suits their needs".

jojoach

My main concern was with large bonuses being paid to the people who, mainly, have been large contributors to the economic problems we are facing. I dont want my money funding such practices. I will look into the accounts suggested, thanks.

Horace

I use the Co-op for my business banking and can remember being asked all kinds of questions such as are you involved in nuclear waste? and other similar questions. Needless to say I said that I wasn't (I am not anyway) and I was then allowed to set up my account. I know that as a member of the FSB I get free banking from the Co-op who will pay me an annual loyalty bonus of £25 and if they make a mistake on my account then I will get £25 compensation.

I havent had a problem with the Co-op yet but cannot comment on their personal accounts because I don't know about them.

opinions4u

jojoach wrote: »

My main concern was with large bonuses being paid to the people who, mainly, have been large contributors to the economic problems we are facing. I dont want my money funding such practices. I will look into the accounts suggested, thanks.

Well perhaps one example would be Andy Hornby. Former Chief Executive of HBOS.

He took a bonus every year. In shares. Those shares lost 98% of value when his bank crashed. So he basically received a near nil bonus and lost his job (with no pay off) when HBOS hit the life support machine. Seems like a reasonable outcome.

He's now Chief Executive of Boots. Perhaps buying your shampoo elsewhere would be an ethical statement.

Or the ethical Co-op. Who doubled their Chief Executive's salary last year. Yet profits didn't double. Does that mean their executive reward policies are unethical? Afterall, they pay their boss more per customer than most other banks.

You will doubtless find other issues along these lines with any other banks or building society that you care to look at. None of them are angels and while some will claim to be better than others it really is a case of shades of grey.