How to Switch to an Ethical Bank Account

—

by

James Walters
in

Here we look at; Is Your Bank Funding Climate Chaos?; What to Consider When Comparing Banks?; How to Find the Best Current Account?; Banks to Avoid; and How to Switch Bank Accounts? This is part of our campaign to #VoteWithOurMoney with 6 Steps to Help Stop Climate Change, one of over 40 ideas in our Sustainability Roadmap, and part of our series on Living Sustainably.

If you already know you don’t want your money being used to fund fossil fuels and global heating, here are the options to switch to an ethical bank:

  1. Find out if Your Money Is Being Used to Fund Climate Chaos
  2. Check out the Ethical Consumer Product Guide on Ethical Bank Accounts
  3. If you go with Triodos you can get some benefits with this referral link
  4. Use the Switch Guarantee scheme

If you want some more facts before making any decisions, let’s get into the details:

[warning – there is a swear word in here, sorry but the big banks make me SOOOOO angry, here’s why…]

Sustainable. Responsible. Those words are often used in banking adverts, however, don’t be fooled by bullshit marketing. It’s no wonder why so many people keep their money in banks.

Unless you dig for the information, it’s easy to bank without the knowledge that your money is being invested in fossil fuels and funding global heating and climate change.

You never see banking adverts that include:

“We invest in fossil fuels and we’re part of destroying the future of humanity”

— A.N.Other Bank

Banks always have nicely designed adverts, and easy to use websites.

Have you ever seen Barclays, HSBC, M&S Money, First Direct, Citigroup, Lloyds Bank, Halifax, Bank of Scotland, NatWest Bank, RBS, Coutts, or Santander openly promote their ongoing financing of fossil fuels?

Or Barclays’ and HSBC’s links to multiple human rights abuses?

Well, all of the above has been found as part of Ethical Consumer’s research into Ethical Bank Accounts.

Why’s this important?

Because these banks do not help climate change.

And on a global scale it’s even worse:

These banks are part of destroying our future, because they continue to invest in one of the most damaging causes of climate change; extracting fossil fuels and burning them.

And, they continue to invest even though they have known about the effects of fossil fuels for many years.

Yes, we are all responsible for burning fossil fuels and causing the pollution that’s pushed our climate almost to the point of no return, where climate change because of humans will be irreversible and will make it difficult, or impossible, for future generations to live; however, we’ve been fed so many lies and cover-ups that it’s no wonder why so many people don’t know the severity of the climate crisis.

All while the big banks continue to invest in fossil fuels.

How can I prove my statement about lies and cover-ups?

Check out this video on Waterbear (it’s free to watch) for a very quick heads-up with some shocking facts and truths about climate denial; [10-minutes] S1, E2: Episode 2: Climate Denial: 50 Years of Lies & Misinformation or watch the YouTube video below:

https://www.youtube.com/watch?v=168je2cRoN8

Right then, shouty bit over.

Let’s get to the positiving things that you can do with your bank account to bank in a way that helps climate change and our future.

For this piece we’ll focus on switching current accounts.

Is Your Bank Funding Climate Chaos?

Before considering moving to another bank account, it’s good to check if you’re already with a good bank.

You can do this for free using bank.green to Find Out If Your Money Is Being Used to Fund Climate Chaos.

Find Out If Your Money Is Being Used to Fund Climate Chaos
SOURCE: bank.green to Find Out If Your Money Is Being Used to Fund Climate Chaos

Let’s look at some of the worst banks…

The Worst High Street Banks in Great Britain

I shed a tear when I found the report on Fossil Banks that have poured $3.8 trillion into the fossil fuel industry since the Paris Climate Agreement in 2015 (you can find out about the Paris Climate Agreement in our article on How To Sustain Life On Our Planet).

The Fossil Banks report shows Barclays is one of the world’s worst offenders—the top offender in Great Britain (GBR)—for financing fossil fuels. Barclays has financed a total of $144.9 billion USD between 2016 and 2020, and has consistently financed fossil fuels each year since the Paris Climate Agreement:

  1. $30.20 billion USD in 2016
  2. $30.73 billion USD in 2017
  3. $25.91 billion USD in 2018
  4. $30.35 billion USD in 2019
  5. $27.70 billion USD in 2020

HSBC is the next GBR bank in the report. From 2016 to 2020, HSBC financed $110.74 billion USD, and it’s stunningly upsetting to see they actually increased their financing of fossil fuels in 2019 and 2020 compared to 2016, 2017, and 2018.

Santander is the next bank that is seen on the UK high street in the list of fossil fuel financers. Santander financed $34.04 billion USD between 2016 and 2020.

Standard Chartered financed $31.42 billion USD between 2016 and 2020, followed by NatWest ($13.39 billion USD), and Lloyds ($11.98 billion USD) as the other GBR banks in the report.

If you want to move to a better bank, let’s look at what you can do next…

What to Consider When Comparing Bank Accounts?

So that your money is not used to fund fossil fuels, global heating, and climate change, here are some considerations when looking at new banks:

  1. Is the bank clear about how it will invest your money?
  2. Have you looked at the bank’s investment policies?
  3. Does it invest in fossil fuels (inc tar sands, ultra-deep sea, and fracking)?
  4. Is it linked to human rights abuses
  5. Does it pay its fair share in tax?

That’s a terrible ‘shit’ list of considerations.

It’s a sad fact that there are businesses that are a major part of our lives that continue to be involved in such unethical and damaging practises.

Well, the good thing is, we don’t HAVE to deal with businesses that want to make money, even if it damages the planet and our future. We don’t HAVE to deal with banks that use our money to fund climate change and global heating. Where we keep our money is entirely up to each of us.

And, it’s super easy to switch, today.

Because all of the worst banks do a great job of nice fluffy marketing and advertising, it’s best to do your own research using an independent website so that you get the facts.

How to Find the Best Bank Account?

The best place to start is the Ethical Consumer Product Guide on Ethical Bank Accounts.

Ethical Consumer has already done all of the research and rated each bank based on that list of considerations, plus a lot more.

Triodos is regularly voted as the most ethical bank.

Triodos are at the forefront of the banking industry in terms of ethics. They finance everything from green-energy to sustainable housing.

Triodos Bank’s mission is to help create a society that protects and promotes quality of life and human dignity for all. Since 1980, their sustainable financial products have enabled individuals and organisations to use their money in ways that benefit people and the environment.

Triodos Bank is one of the most sustainable banks in the world. They make money work for positive social, environmental and cultural change.

If you choose to switch to Triodos you can use this referral link to get some benefits*.

Triodos does have a small monthly charge but there are banks with no monthly charge that get a good ethical score such as Cumberland and Nationwide.

Tax Avoidance

Here are the banks that scored poorly for likely use of tax avoidance strategies:

  1. Al Rayan
  2. Lloyds Banking Group
  3. Banco Santander
  4. Citigroup
  5. NatWest Group
  6. HSBC
  7. Barclays
  8. Tesco

Climate Change

Out of 32 banks that Ethical Consumer researched:

  1. Triodos got a best score for climate change
  2. Cumberland and Co-operative Bank got a middle score
  3. Unfortunately, all other banks scored worst!

Banks Financing Fossil Fuels!

All the banks in this list continue to finance fossil fuel companies:

  • Banco de Sabadell (owner of TSB)
  • Barclays
  • Citigroup (Citibank)
  • Danske Bank
  • Deutsche Bank (part owner of ICICI)
  • Handelsbanken
  • HSBC
  • Lloyds Banking Group
  • NatWest Group
  • Santander
  • Virgin Money

Co-operative Bank was the only high-street bank that does not support fossil fuels.

How to Switch Bank Account?

Switching bank accounts is super easy. Thanks to the Switch Guarantee, you can switch current accounts within 7-days.

Over 6 million current accounts have been switched so far. More than 40 banks and building societies are part of the service.

With the Switch Guarantee, your new bank will switch your payments and transfer your balance. Your old bank will close your account.

There are some limitations so it’s best to check all the details on the Current Account Switch website.

Even if you can’t use the Switch Guarantee service it’s still best to move to an ethical or green bank because of the huge benefits to your future and future generations.

This piece was focused on switching current accounts.

You can find the same score table and ethical ratings for savings accounts, just search for Ethical Consumer Ethical Savings Accounts Product Guide.

Here Is What You Can Do

Want to Continue Your Journey?

Where Next?

There is so much inspiring information to give you ideas of how to help climate change by growing, eating, and living sustainably, you can:

  1. Read Our Articles
  2. Sign-Up to Our Free Email Newsletter
  3. Get Started and Vote with Your Money
  4. Try the Sustainability Roadmap
  5. Use the Company Directory
  6. Support Nafford Junction

Help Us Inspire Others

If you are passionate about helping climate change, please consider supporting Nafford Junction, you can:

  1. Become a Patron to Give Regular Contributions
  2. Buy Me a Coffee to Make a One-Off Contribution
  3. Create for Us and Publish Thought Provoking Content
  4. Become an Inspiring Leader and Advertise with Us
  5. Go to NaffordJunction.co.uk/support

Sources Used to Create This

  1. #VoteWithOurMoney and Help Stop Climate Change
  2. Episode 2: Climate Denial: 50 Years of Lies & Misinformation
  3. Fossil fuel companies have been lying to you!
  4. Bank.Green: Find Ethical & Sustainable Banks In Your Area
  5. Fossil Banks | Fossil Banks No Thanks!
  6. Ethical Bank Accounts (28th August 2020)
  7. Triodos referral link for benefits*
  8. The Current Account Switch Service – your guarantee to a successful switch
  9. Ethical Savings Accounts: independent guide from Ethical Consumer.

Production Notes

This was produced by me, James Walters, as a personal project to help stop climate change by inspiring others to grow, eat, and live sustainably.

Any advice given is the opinion of those involved and does not constitute medical, financial, or legal advice.

* We include links we think you will find useful. If you buy through those links, we may earn a small commission. It’s one way to support our work and to inspire as many people as possible.