Ethical bank Triodos will open its first current account for customers this week.
The Dutch-owned bank, best known for investing in socially and environmentally responsible projects, has offered Isas and investments to UK consumers for more than 20 years. But this will be its first move into day-to-day banking.
Here, The Mail on Sunday looks at the account and other options for those keen to pursue more ethical finances.
Connection: Hannah Gilbertworks for the charity ShareAction, which promotes responsible investing (read her story below)
CURRENT ACCOUNTS
The Triodos Bank current account can be opened and operated online – and also by mobile phone app.
Account holders can have an overdraft of up to £2,000 and the interest rate on borrowing is 18 per cent (similar to high street banks).
There is no telephone banking and no branches, but you can request a cheque book. The debit card is made from eco-friendly plastic.
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HOW THIS IS MONEY CAN HELP
- Looking for a better bank? This is Money's five of the best current accounts
There is a £3 monthly fee for the account – which Triodos says is a fair and transparent representation of the cost of banking.
It is part of the Dutch depositor protection scheme. This means that in the event the bank fails, customers in Britain would have to apply through a scheme in Holland.
Cash in deposit accounts is protected up to €100,000 (£87,000) but this value will fluctuate with the exchange rate.
For those looking to ditch the big banks, the Triodos current account ranks in first place for its ethical standpoint, according to the Ethical Consumer Research Association (ethicalconsumer.org).
People can register their interest in the account on Triodos's website and the bank will write in June inviting people to apply.
Action group Ethical Consumer – which rates companies based on their record in key areas, such as the environment, human rights, the arms trade, tax avoidance, executive pay and corporate responsibility – also says Co-operative Bank and its online arm Smile, Nationwide Building Society and Metro Bank should be considered for current accounts.
I PREFER PLANET-FRIENDLY INVESTMENTS
Hannah Gilbert is determined her savings and investments will not be used to support industries she does not believe in – or harm the planet.
The 42-year-old, from North-West London, works for the charity ShareAction, which promotes responsible investing.
She selects ethical investment funds, including Stewart Investors Worldwide Sustainability and Henderson Institutional Global Care Managed, through an online investment platform and also invests through Rathbone Greenbank, the ethical investment service.
Hannah, who is married to Duncan, 44, and has two children Alice, seven, and five-year-old Rose, also puts money in a so-called 'innovative finance' Isa with peer-to-peer lender Abundance.
Hannah says: 'It's important to me to have a connection with where my money is invested. It isn't always easy as with many of my investments – such as my pension – I don't have much discretion over how the money is invested.
'But where I can, I take as much control as possible.'
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SAVINGS
Those looking for deposit accounts with banks or building societies with a more ethical approach – and not just current accounts – should consider saving with Charity Bank, Ecology Building Society and Triodos.
Other providers that score well are all mutual organisations. This is because they have no shareholders. Among those favoured are Leeds, Coventry, Cumberland, Newcastle, Principality and West Bromwich building societies.
The best easy access savings from this group are Coventry's Easy Access Saver and West Bromwich's Limited Access Saver at 0.85 per cent and Leeds's Rainy Day Saver at 0.8 per cent.
By comparison, the best-buy easy access savings account on the market is with RCI Bank at 1.1 per cent. Coventry also has a table-topping cash Isa paying 1.4 per cent a year fixed for three years.
>Find a better paying savings account: This is Money's independent savings rates
ETHICAL INVESTING
Sometimes referred to as 'green', 'sustainable' or socially responsible, ethical investment means choosing funds that seek financial returns but without creating social or environmental harm.
Good growth:For those looking to ditch the big banks, the Triodos current account ranks in first place for its ethical standpoint
As well as screening out companies and sectors such as oil and mining, tobacco and arms manufacture, many funds actively invest in areas that bring about social change.
The ethical fund market is small, with about £13 billion in assets under management, according to the Investment Association, and represents about one per cent of the investment market. Growth has been static in recent years.
But Becky O'Connor, co-founder of website Good With Money, which offers information on ethical finances, believes consumers are interested in knowing where their funds are invested, but a lack of transparency in the market makes this difficult.
She says: 'Most people have values and given the choice, if it was at no cost to them, would prefer to know that their money is funding businesses that have a positive impact.
'The problem is, many don't know, because they aren't told.
'Many of these funds generate as much growth as standard funds, but their additional benefits are rarely highlighted by the big online brokers.'
GREEN WITHOUT SEEING RED
It used to be that opting for a 'green' energy tariff meant paying more for your principles. But this is no longer necessary. Hotter competition in the energy market – including green or renewables tariffs – has pushed prices down, which is good news for climate-conscious consumers.
The cheapest green tariffs are now about £10 less than the best-buy gas and electricity tariffs. Switching to a 'green' tariff still means gas and electricity comes into your home in the same way – most likely from fossil fuels. But a greater proportion of the bill is used to invest in renewable energy.
Renewable energy supplier Engie has a fixed tariff at £873 per year – this is based on average household usage. By contrast, based on the same usage, standard tariffs with the Big Six energy suppliers – including British Gas, EDF Energy and Eon – would cost £250 a year more.
Other competitive green tariffs are available from Bulb Energy, Tonik Energy and Octopus Energy. For more information use a comparison website such as uSwitch or energyhelpline.
Ecotricity, which funds the building of renewable energy sources, including the first green gas sourced from grass, has one of the lowest carbon footprints of any energy supplier.
Brighter World Energy, set up by former business journalist Cheryl Latham, pledges to build a solar powered micro-grid in communities in Africa for every 2,000 customers who switch to its service.
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THIS IS MONEY'S FIVE OF THE BEST CURRENT ACCOUNTS
Chase Bank will pay £1% cashback on spending for the first 12 months. Customers also get access to an easy-access linked savings account paying 3.8% on balances up to £250,000. The account is completely free to set up and is entirely app based. Also no charges when using the card abroad.
Nationwide's FlexDirect Account offers 5% in-credit interest to new joiners when they switch on balances up to £1,500. This rate only lasts for one year. The account is fee free.
Halifax Reward Account pays £150 when you switch. Also earn up to an extra £75 cashback when you spend £750 each month for 3 months. There is a £3 monthly account fee, but that’s stopped by paying in at least £1,500 each month.
First Direct will give newcomers £175 when they switch their account. It also offers a £250 interest-free overdraft. Customers must pay in at least £1,000 within three months of opening the account.
NatWest's Select Account account pays £200 when you switch. The account has no monthly charges, but to be elligible for the £200, you'll need to deposit £1,250 into the account and log into mobile banking app within 60 days.
Deals picked by This is Money's specialist reporters.
Read our full best bank accounts round-up
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