Best ethical savings account

runciblespoon

Another thing is that there are roughly two types of ethical investment (I know you're going for savings, but bear with me):

Those that don't invest in 'bad' things (arms, !!!!!!, tobacco, GM food, nuclear power, child labour)
Those that invest in 'good' things (renewable energy, community projects, organic food, eco-houses, public transport)

Most of the accounts out there are about filtering the 'bad' things (which uses their definition of 'bad', not yours). But there are others who invest in 'good' things (again, their definition of 'good') - for example Triodos or Ecology Building Society.

Bear in mind that everyone's priorities are different - some people may be against nuclear power, others may be in favour of it. Ethical investment is all about compromises. If you can't make compromises, buy shares yourself or try something like Zopa. But be prepared to take risks if you do that.

realaledrinker

KeithEssex wrote: »

If you deposit your money with an Ethical Bank (e.g. The Co-op) what happens when they simply lend it to Barclays ?

Co-op have an ethical policy unit which screens all loan/new account applications. They turned away £12m of bottom line profit last year due to reasons such as involvement in extractive industries, arms trade, tobacco, animal testing.... They have had a customer-led ethical policy since 1992, unlike the Johnny-come-lateleys like M&S, etc.

Afraid Barclays would fail at the first hurdle.

theyellowlizard

Thanks again everyone for your help - particularly runciblespoon for mentioning Triodos, who I'd never heard of but whose policies seemed interesting and offered a better rate than I've got currently.

All very interesting debating the issue. Like I said above, I don't expect the international arms trade to collapse because I don't open a savings account with Barclays, but at least I'm not contributing to something I abhor!

And fair play to KeithEssex for being devil's advocate and sticking his neck out!

Milarky

realaledrinker wrote: »

Co-op have an ethical policy unit which screens all loan/new account applications. They turned away £12m of bottom line profit last year due to reasons such as involvement in extractive industries, arms trade, tobacco, animal testing.... They have had a customer-led ethical policy since 1992, unlike the Johnny-come-lateleys like M&S, etc.

Afraid Barclays would fail at the first hurdle.

Bad example! The Co-op Bankrolls 'The Labour Party' - an insideous organisation, now dedicated to such noteworthy causes as the repeal of civil liberties and cheerleading the US [George W is here today!]

That doesn't make the Co-op responsible for the war on Iraq, anymore than it makes Barclays (assuming they lend to the Tories) but it does expose the rather limited nature of 'ethical investment' doesn't it? Barclays used to lend money to South Africa (the old 'bad' Aparthied one - not the new one with the courage to tell R Mugabe to stop beating up his own people.) As KE suggests, people - as consumers of all sorts of things - can be far, far more ethical by their choice of positive actions with their money than by leaving it to a bunch of suits in a 'policy unit'.

dunstonh

Co-op may have an ethical stance publicly but other parts of the co-op do not. You cant pick and chose which bits will be ethical and which will not.

runciblespoon

Milarky wrote: »

Bad example! The Co-op Bankrolls 'The Labour Party' - an insideous organisation, now dedicated to such noteworthy causes as the repeal of civil liberties and cheerleading the US [George W is here today!]

Whatever one's views on the situation, it's important to understand how this came about. The Co-operative Movement doesn't just bankroll the Labour Party, it is the Labour Party. Read the history of the Co-operative Movement. The Co-operative Movement was originally politically neutral, but in 1917 felt that it was being attacked by capitalist interests, notably being denied staple foods that were available on ration and unduly heavy conscription from its ranks. It thus formed the Co-operative Party, which took its first seat in 1918. Feeling that its socialist interests were best served by alliance, it entered into a formal alliance with the Labour Party in 1927, which after various revisions remains to this day.

Today the Labour Movement consists of three arms: the Labour Party, the Co-operative Party and the Trade Union Movement. There are 29 MPs elected under the Labour & Co-operative banner.
As the Wikipedia article says:

The basic principles underpinning the party are to seek recognition for co-operative enterprises, recognition for the social economy, and to advance support for co-operatives and co-operation across Europe and the developing world. They also stand for a sustainable economy and society, a culture of citizenship and socially responsible business represented by the practice of retail and industrial co-operatives. The Co-operative Party seeks to advance its agenda through the Parliamentary Labour Party with whom they share common values and gain cabinet members.

It's interesting to note that only in the last 9 months has the Conservative party officially aimed at co-operative ideals.

Special_Saver2

If you don't mind a low interest rate, then there is one more bank worth mentioning - Charity Bank.

TechnoBadger

runciblespoon wrote: »

If you can't make compromises, buy shares yourself or try something like Zopa. But be prepared to take risks if you do that.

Just about all my shares are on a slippery slope at the moment... Now my Zopa lending, well that's a different kettle of fish. It's P2P lending to credit-worthy people. You choose your own rates and diversification depending on how quick you want your money to go out. Yes, there could be defaults but they've been very, very low so far and none in my case after about eight months with them. Check out their forums - I think you'll find everyone happy at the moment. Drip feed your money, and obviously try just a little to start with. Good fun, and can be hands-on or hands-off depending on yourself. Highly recommended.

www.uk.zopa.com

http://talk.zopa.com/