Best 'Ethical' Current Accounts

LyndsM

I am in the happy position of having just paid off my last remaining bits of debt, including a huge overdraft that has had me tied to the Halifax for years (Hurray! :j I'm freeeee!)

I'd like to be able to choose a more ethical current account, and have looked at Smile & Co-op (but they are the same people) and am now looking at Triodos.

Does anyone have any good/bad experiences with any of these or know of any other 'ethical banks' I should be considering?

I would like to do the 'right' thing and put my money with someone a bit more world-friendly :A , but don't want to do this at the expense of customer service, (or interest rates!) as I have had enough of being treated like a muppet by the Halifax!

Decisions, decisions...

Thanks!

Lynds

martinpike

Hi Lynds,

I think you've pretty much identified the two primary ethical current account providers.

I've heard good things about Smile service, but have never had an account with them myself.

Don't know anything about Triodos, other than Ethical Consumer magazine seems to like them.

Cheers, Martin.

realaledrinker

I do all my current account banking with them plus have their ISA which pays 5% - not the best but up there.

Their service levels are the best there is and they pay 3.3% AER interest on the current account plus if you apply before the end of July you will get £25 for opening an account!

thirty_dancing

I have a basic account with the Co-op and can't praise them highly enough. I received my card within 4 working days (although my savings accounts took a little longer) and their customer service has been excellent.

What has impressed me more than anything is the way they deal with people face to face - I have been in the branch when there have been people with all sorts of issues - poor english, what seems to be mental health issues, illiteracy, accompanied by key workers etc and on every occaision the clients have been treated with courtesy, respect and kindness.

Kudos to the Co-op staff!

zzzLazyDaisy

I've had a coop account for years. Brilliant service. Good telephone banking system. Can't fault them. Don't keep too much in current account though, coz it pays no interest. If you are going to keep any amount of money in there the Smile Account is the on-line version and pays interest - not up there with the market leaders, but okay. My money goes straight in and out again, so it isn't a big issue for me.

LyndsM

Thanks everyone - So it seems that I can take my pick, service-wise! Just a toss-up between the various benefits/incentives then... agh, more decisions!

Cheers
Lynds

Rafter

Co-op/smile do have the unique combination of an ethical policy and good value products.

Another one to look at is Nationwide, which as a building society is owned by its members (like the co-op) and lends money to individuals (mainly as mortgages) rather than to corporations that might engage in unethical businesses (in your view). Their bank account and credit cards are great, particularly if you travel overseas.

You have to remember that banks are not closed systems though. Any bank lends and borrows money from other banks and has no control over where the money gets used. Just as the major supermarkets sell both fair trade goods and clothes and food made in sweatshops in the third world.

All the major banks have Corporate social responsibility statements though and have strict criteria about who they lend to, both countries and companies.


Here is my own approach to ethical living:

1) I have offset accounts and Mortgage with First Direct (ie I'm a net borrower from HSBC) so no problems about my money being lent to arms or tobacco companies, for example.

2) My main savings are in a FTSE4GOOD (ethical UK index) tracker with Direct Line and my pension fund is also invested ethically. Both generate better returns that the all share index.

3) I try to avoid, but not exclusively, companies with a poor ethical or environmental record (Nestle and Esso for example) while recognising that these companies still have good people working for them and are not evil to the core.

4) I live carbon neutrally, by planing around 12 trees a year to offset the CO2 produced by my car, house and holiday trips. (although the science isn't 100% proven, it seems to make sense to me, particularly as oil and coal are simply long decomposed plants and animals.

5) I give 1% of my gross salary to charity though payroll giving to help those less fortunate than myself and specific environmental and wildlife projects.


R.

PS - Sorry - you didn't ask for all this info, just felt like sharing it and finding out what others think!

LyndsM

Thanks Rafter - for all the information!
I work in a (mostly) ethical company, try to shop ethically, don't drive or have a car ... amongst other things!
Seems that once I get the thought into my head about one thing, everything else then need looking at and 'greening up'! (Am now starting to really annoy my friends... :rolleyes: )
I'd be interested in other's thoughts too about ehtical living and or banking...perhaps we should open up a wider ranging topic in the Arms?
Cheers

Lynds

realaledrinker

If you are still wavering, have a browse at the Co-op bank website. Plenty of ethical/corporate responsibility stuff on there.

http://www.co-operativebank.co.uk/ethics