Knowing how an investment is being used can be very important to many savers.
For instance, you might not be happy knowing that your savings are being used to help finance industries that have an adverse effect on the environment. Or you may not want your money lent to the producers of weapons, or to bankroll a gambling business.
You might want to go even further and know that your money is only being invested in organisations and projects that make a positive impact to the environment and to local communities.
There is a small minority of truly ethical banks and building societies in the UK that offer such transparency and ethical lending commitments. They are:
However, it’s worth pointing out that Sharia’a compliant accounts also tend to operate under ethical principles, with the money held never being used to fund businesses that engage in unethical activities. These banks include:
It is generally the case that you don't earn as much interest in an ethical savings account as in a non-ethical alternative – the exception being with Sharia’a compliant accounts, which often boast the top (or near-top) rates for their terms – but what you do get is peace of mind that every penny of interest you receive has been earned ethically.
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.