The past few years have shown how quickly financial stability can shift. From the long tail of the pandemic to rising geopolitical tensions – including the Iran conflict pushing up energy prices again – households are facing ongoing cost-of-living pressure. With mortgage rates still uncertain, building a reliable cash buffer remains as important as ever.
But where you keep that money matters.
Many of the UK’s biggest banks continue to finance fossil fuels and other harmful industries. For savers who want their money to support positive change, green and ethical Cash ISAs offer a clear alternative.
These providers range from dedicated ethical banks financing environmental and social projects, to mutuals and more neutral players that tend to have a lighter footprint than shareholder-driven high street banks.
While cash savings are unlikely to outpace inflation over time, they offer stability. Unlike investments, their value doesn’t fluctuate, making them well suited to emergency funds and short-term goals. And, as with all UK Cash ISAs, eligible deposits are protected up to £125,000 under the Financial Services Compensation Scheme.
Here, we round up some of the best options for a Good Cash ISA.
Easy Access ISAs
Skipton Building Society
- Member Annual Allowance Cash ISA 4.02 per cent (gross/AER/variable)
As well as not investing in fossil fuels, Skipton offsets more emissions than its operations produce. Since 2022, Skipton has committed to giving one per cent of its pre-tax Group profit to charity each year.
Ecology Building Society
- Ecology Cash ISA 2.8 per cent (gross/AER/variable)
Ecology Building Society uses its savers’ deposits to lend out as eco-friendly mortgages for new-builds and renovation projects with the ultimate aim of helping make Britain’s housing stock more energy efficient.
Ecology has a Good Egg mark from Good With Money, awarded only to companies that make a positive impact in the world.
Triodos Bank
- Online Cash ISA 2.36 per cent (gross/AER/variable)
Ethical Bank Triodos, which also has a Good Egg mark from Good With Money, uses the money its savers deposit with it to lend out to real economy businesses making a positive environmental, social or cultural impact on the world.
Also offering stock market investments, crowd-funded Innovative Finance ISAs (IFISAs) and ethical current and savings accounts, Triodos is a true leader in the field of ethical personal finance.
Top 9 ethical current accounts
Fixed rate ISAs
Bear in mind that with these options, your money is locked away for the length of the term.
Nationwide Building Society
- 1 Year Fixed Rate Cash ISA 4.05 per cent (gross/AER/fixed)
Nationwide is the UK’s largest mutual, meaning it’s owned by and run for the benefit of its members. Because of the way it’s run, it says, it’s free to reinvest more profits into products and services that benefit members, rather than being driven by shareholders. It says doing the right thing by its members is at the heart of what it does.
Yorkshire Building Society
- Four Access eISA 4.05 per cent (gross/AER/fixed)
Yorkshire Building Society is an official signatory of the UN Principles for Responsible Banking – a single framework for a sustainable banking industry.
The mutual has made a commitment to identify and measure the environmental and social impacts of its business activities, set and implement targets where it has the most impact, and regularly report publicly on its progress.
Gatehouse Bank
- One Year Fixed Term Woodland Cash ISA, Shariah principles 3.96 per cent (gross/AER/fixed)
An Islamic Bank, Gatehouse avoids investing in industries considered to be unethical under Shariah principles, which in practice are the same as those frowned upon under Christianity. The firm states it will “only invest funds in ethical goods and services and, for example, does not invest in gambling, alcohol, tobacco or arms”. It invests in real estate and construction as well as sukuk, which are sometimes known as Islamic Bonds.
Additionally, for every Woodland Saver account opened or renewed, Gatehouse will plant a tree in a UK woodland on the saver’s behalf.
Under Shariah principles, interest cannot be earned but profit is generated instead. The profit shared is the expected profit rate at the time the account is opened. To date, Gatehouse has always generated and paid its customers the expected profit rate. Find out more about how it works here.
Other options to consider for Cash ISAs with more ethically-minded providers include Chelsea Building Society, Coventry Building Society and Cooperative Bank.
Charity Bank
- Ethical 1 year Cash ISA 3.61 per cent (gross/AER/fixed)
Charity Bank was founded to support charities with loans that they couldn’t find elsewhere and to show people how their savings could be invested ethically and in ways that would make them happy. It invests its customers’ money into charities and social enterprises around the country.
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