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Now even banks are offering customers green options, from paperless billing to ethical investments. Huma Qureshi reports
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This article appeared in the Observer on Sunday May 18 2008 on p19 of the Cash section. It was last updated at 00:03 on May 18 2008.
Savers who are keen to help the environment and make their money work ethically don't have to rely only on investments: there is also a limited but growing number of savings and current accounts to choose from.
'People around the world are looking for ways to reduce their carbon footprint,' says Tim Pie, spokesman for HSBC, which offers customers an environmentally friendly paperless option for day-to-day banking. 'Many people don't want or need monthly paper statements delivered to them - so by giving them the simple option not to have them, they can make a positive contribution to the environment.'
Customers who opt for HSBC's green current account can also benefit from £70 worth of savings with green energy supplier Ecotricity, free energy-efficient light bulbs, and 10 per cent off every order from online ethical store the Natural Collection.
If you venture off the high street towards smaller providers, you are more likely to find 'greener' offerings. The Ecology building society, which is known for its specialist mortgages for sustainable eco-properties, also has a small savings arm. Ecology's Earthwise cash Isa pays 4.1 per cent interest (minimum £25 investment).
Savers with Triodos, a small Dutch ethical bank that only lends to businesses that contribute positively to the environment, can visit some of its eco-clients, including an organic farm in Scotland and Greenpeace headquarters. Triodos offers both regular savings accounts and charity savings accounts, which make donations on the saver's behalf to organisations such as Amnesty and the Wildlife Trust. Savers can also opt to donate all or some of their interest to a charity they choose. 'It's a way for people to support an organisation that is dear to them,' says James Niven, spokesman for the bank.
The most popular charity account Triodos operates is the Organic Saver, which helps provide finance for organic farms. But the rates are low; the 90-day-notice regular saver pays just 3.6 per cent interest while the Organic Saver and Amnesty Saver pay 2.35 per cent interest on balances over £100 - both below the rate of inflation. The 90-day Wildlife Saver offers 2.6 per cent interest, although the Triodos cash Isa pays more at 4.4 per cent.
Michele Slade, analyst at Moneyfacts, says: 'With rates this low, you wouldn't necessarily see your money grow and you're missing out on twice as much interest as some of the current mainstream best buys, such as Abbey's fixed monthly saver, which pays 7.25 per cent.'
Niven says: 'Low interest rates will obviously put people off who are only after high interest. But more and more people aren't only interested in rates, and rightly demand much more from their bank.'
For slightly better rates combined with an ethical approach, Slade recommends the Co-operative Bank. The Co-op asks its customers every year what they think the bank should invest in. Duncan Bowker, spokesman for Co-op, says customers 'gain instant peace of mind over how your money is managed and where it is invested, and that they are actively involved in everything we say and do. As a customer you are actively engaged in how the future ethical policy is shaped.'
Co-op's next customer vote on policy takes place in September. Slade recommends the Co-op's Smart Saver account, which requires a £1 minimum deposit and pays 4.18 per cent, and its fixed rate one-year bond which pays 5.25 per cent on a minimum £2,000 deposit. 'The Co-op's rates are always consistent, even if they aren't necessarily at the top of the best buy tables,' she says. 'There are bonds that are paying far more interest, such as IceSave's 7.01 per cent one-year bond or Birmingham Midshire's 6.88 per cent internet bond, but 5.25 per cent isn't bad at all.'
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About this article
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This article appeared in the Observer on Sunday May 18 2008 on p19 of the Cash section. It was last updated at 00:03 on May 18 2008.
Savers who are keen to help the environment and make their money work ethically don't have to rely only on investments: there is also a limited but growing number of savings and current accounts to choose from.
'People around the world are looking for ways to reduce their carbon footprint,' says Tim Pie, spokesman for HSBC, which offers customers an environmentally friendly paperless option for day-to-day banking. 'Many people don't want or need monthly paper statements delivered to them - so by giving them the simple option not to have them, they can make a positive contribution to the environment.'
Customers who opt for HSBC's green current account can also benefit from £70 worth of savings with green energy supplier Ecotricity, free energy-efficient light bulbs, and 10 per cent off every order from online ethical store the Natural Collection.
If you venture off the high street towards smaller providers, you are more likely to find 'greener' offerings. The Ecology building society, which is known for its specialist mortgages for sustainable eco-properties, also has a small savings arm. Ecology's Earthwise cash Isa pays 4.1 per cent interest (minimum £25 investment).
Savers with Triodos, a small Dutch ethical bank that only lends to businesses that contribute positively to the environment, can visit some of its eco-clients, including an organic farm in Scotland and Greenpeace headquarters. Triodos offers both regular savings accounts and charity savings accounts, which make donations on the saver's behalf to organisations such as Amnesty and the Wildlife Trust. Savers can also opt to donate all or some of their interest to a charity they choose. 'It's a way for people to support an organisation that is dear to them,' says James Niven, spokesman for the bank.
The most popular charity account Triodos operates is the Organic Saver, which helps provide finance for organic farms. But the rates are low; the 90-day-notice regular saver pays just 3.6 per cent interest while the Organic Saver and Amnesty Saver pay 2.35 per cent interest on balances over £100 - both below the rate of inflation. The 90-day Wildlife Saver offers 2.6 per cent interest, although the Triodos cash Isa pays more at 4.4 per cent.
Michele Slade, analyst at Moneyfacts, says: 'With rates this low, you wouldn't necessarily see your money grow and you're missing out on twice as much interest as some of the current mainstream best buys, such as Abbey's fixed monthly saver, which pays 7.25 per cent.'
Niven says: 'Low interest rates will obviously put people off who are only after high interest. But more and more people aren't only interested in rates, and rightly demand much more from their bank.'
For slightly better rates combined with an ethical approach, Slade recommends the Co-operative Bank. The Co-op asks its customers every year what they think the bank should invest in. Duncan Bowker, spokesman for Co-op, says customers 'gain instant peace of mind over how your money is managed and where it is invested, and that they are actively involved in everything we say and do. As a customer you are actively engaged in how the future ethical policy is shaped.'
Co-op's next customer vote on policy takes place in September. Slade recommends the Co-op's Smart Saver account, which requires a £1 minimum deposit and pays 4.18 per cent, and its fixed rate one-year bond which pays 5.25 per cent on a minimum £2,000 deposit. 'The Co-op's rates are always consistent, even if they aren't necessarily at the top of the best buy tables,' she says. 'There are bonds that are paying far more interest, such as IceSave's 7.01 per cent one-year bond or Birmingham Midshire's 6.88 per cent internet bond, but 5.25 per cent isn't bad at all.'
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