Ethical banking
How to find the best ethical current accounts and green savings accounts
Want your money to support causes you care about? We explain how ethical banking works, compare ethical current accounts and green savings accounts, and show you what to consider before switching – including whether going green could cost you money.
What is ethical banking?
'Ethical banking' has a range of definitions, but it's generally considered to be choosing a bank that follows a set of principles or goals in an attempt to improve the environment and society. This could be a bank that refuses to invest in the mining of fossil fuels, or one that provides affordable loans to charities.
It can also mean looking at the way a bank is run too. For example, do they pay their staff the real living wage rather than minimum wage? Are they paperless? Are they transparent about which industries they invest in?
When you deposit money into your current or savings account, it doesn't just pile up in a big vault somewhere. The bank makes a profit by investing your money in businesses, for example, or by giving loans to individuals or charities. When you choose a bank specifically on its ethics, you're having a say in what your money helps to fund. But choosing an ethical bank can sometimes mean sacrificing interest or paying account fees.
If particular ethical principles are important to you, it's worth taking the time to research a bank's investments and ethos to ensure you're happy with how your money is being used.
What makes a bank ethical?
'Ethical' means different things to different people. You might decide that a bank focused on reducing climate impact is a better fit for you than a bank that avoids investing in gambling or animal testing – or vice versa. Banks don't always make it easy to see where their money goes, so it's worth looking beyond their green claims.
Things to consider include:
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Transparency. Some banks are more open than others about the areas they invest in and their internal business practices (such as working and pay conditions).
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Avoiding investing in particular industries. Some banks will actively avoid investing in certain industries they consider particularly harmful. These include mining fossil fuels, arms dealing, gambling websites and animal testing.
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Actively investing in the local community or third sector.
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Ethical business practices. Being climate-focused as well as people-focused, for example, operating a paperless business, and paying all their staff a real living wage.
One way to compare providers is through The Good Shopping Guide, a UK-based ethical consumer research and ratings website that assesses companies on environmental, social and ethical factors. Its ratings can be a useful starting point, though they're not a definitive measure of how ethical a bank is. It's worth checking the issues that matter most to you.
Top ethical current accounts
There aren't many completely ethical banks in the UK, and only a couple have current accounts. Here we've listed the most ethical banks, according to The Good Shopping Guide rankings, that offer current accounts.
If you want to switch to an ethical bank, first compare what you'd be giving up. Some mainstream current accounts offer switching bonuses, cashback, interest or other perks that could be worth £100s. See our Best bank accounts guide.
Bank | Current account details | Ethical score (1) |
|---|---|---|
The current account costs £3 a month - the bank says it prefers to share the cost of banking across all customers, rather than offering free banking to some and charging high interest to others. You'll also get a debit card made from recycled plastic. | 98/100 | |
Open its fee-free current account and you get a bog-standard bank account that lets you make payments, pay bills and withdraw cash. The bank also offers a decent packaged account. | 93/100 | |
Nationwide's FlexDirect current account offers 5% interest on up to £1,500 for a year, up to £120/yr cashback on spending & bills, 6.5% regular saver & a £50 0% overdraft. Plus newbies can get £175 for switching to it. | 85/100 |
Updated October 2026. (1) Scores taken from The Good Shopping Guide.
Top ethical and green savings accounts
If you're looking to save rather than spend, there's more choice. Some banks and building societies specifically use savers' deposits to fund environmental or social projects.
There are no official or regulated definitions on what is an 'ethical' or 'green' provider when it comes to savings. But in practice, ethical accounts avoid funding harmful sectors – for example, fossil fuels, weapons, tobacco, while green accounts actively use deposits to fund environmental or renewable projects – for example, solar farms and eco-housing.
However, these types of savings accounts don't always offer the highest interest rates, so it's important to compare them with standard Top savings accounts.
Provider | 'Green' and 'ethical' savings products offered | How does it contribute to environmental causes? | (1) |
|---|---|---|---|
4.73% | The funds it raises will be used by the Government to help environmentally-focused projects get off the ground, for example building offshore wind farms or revamping homes and public transport | N/A (2) | |
4.65% Double-access cash ISA (min £50) | Provides lending to support sustainable projects and properties, with £39.3 million lent in 2020 | 100/100 | |
3.91% | Supports social enterprises and charities | 96/100 | |
4% | Funds electric vehicles and charging facilities | Not yet rated | |
Up to 2.2% Easy-access (min £1) | Invests in a range of companies that have a positive impact on the environment to "support a sustainable future" | 96/100 | |
Woodland Saver: | Sharia-compliant banking, avoiding certain industries such as gambling and alcohol. Plants a tree in a certified UK woodland for every Woodland Saver account opened or renewed. | 90/100 |
(1) Rating taken from Ethical Consumer scoring table. (2) NS&I will give funds to the projects the Government chooses to back, rather than choosing what to invest in itself, so an ethical rating isn't relevant here.
All accounts have the full £120,000 Financial Services Compensation Scheme savings protection. Money saved with NS&I is 100% guaranteed via backing from the Treasury.
Do ethical savings and current accounts work differently to 'normal' accounts?
An ethical current or savings account can be used in pretty much the same way as a standard account – the main difference is what goes on behind the scenes and you may receive more regular updates from the bank about their business and ethical practices.
You'll still be able to manage your account online or in branch and (if it's a current account) use a debit card to pay for things. If you opt for a current account from Triodos Bank, your debit card will made from recycled plastic.
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