Here we look at Triodos Bank – a leading sustainable bank that makes money work for positive change.
The deal
Founded in 1980, Triodos Bank is a global pioneer in sustainable banking. Its ethos is that banking can be a powerful force for good, serving individuals and communities while building a stronger, more sustainable society. Therefore it will only finance organisations that are making a positive impact on the planet and its people. Triodos operates in the Netherlands, the UK, Belgium, Spain and Germany.
Triodos offers a full suite of everyday ethical banking services for individuals, businesses and charities. These include a current account, savings accounts and individual savings accounts (ISAs). It was the first (and is still the only) bank to be awarded a Good With Money ‘Good Egg’ mark.
Triodos also offers a range of impact investment opportunities from socially responsible investment (SRI) and direct investments to microfinance – all investing in organisations that are bringing about positive change. To date, Triodos has raised more than £187 million in social investments for 50 individual organisations.
In 2018, Triodos launched its own crowdfunding platform to make it easier for its community of sustainably-minded investors to find social investment opportunities.
Triodos currently has around 73,000 customers in the UK (740,000 worldwide) putting their money to work for positive change.
Its banking ethics have not gone unnoticed. Triodos was recently awarded a Which? Eco Provider badge for its current account. It was also named “the most active clean energy leader” by independent analyst Clean Energy Pipeline, after supporting 140 projects in 2022, and named ‘Bank of the Year’ at the Charity Times Awards 2023.
User-friendliness
The mobile banking app is simple and easy to navigate. It allows you to see all of your accounts in one overview, make payments, check your balance and recent transactions, and set up text alerts to help you monitor your budgets and spending. There is a customer service team available from 8am to 6pm to help with any questions you may have.
Triodos also makes it easy to invest your money in a positive future. It lays out its range of impact investment opportunities – the Triodos Pioneer Impact Fund, Triodos Sterling Bond Impact Fund and Triodos Global Equities Impact Fund – clearly and is fully transparent about what your money will be used for. It also delves deeper into some of the projects it supports through video interviews and a blog.
Is it safe?
Yes. Triodos Bank is covered by the UK Financial Services Compensation Scheme, meaning any money up to £85,000 is protected by the government.
Sustainable option
Triodos was founded on the conviction that banking can be a powerful force for good – therefore all of its banking and investment options are sustainable. The bank backs the world’s transition to a low carbon and climate-friendly future, in line with the Paris Agreement’s most ambitious target to limit the global temperature increase to a maximum 1.5 degrees.
Triodos has made £9.4 billion in loans to projects across Europe benefitting people and planet.
Triodos leads the way when it comes to sustainable finance, and encourages other banks to follow its example. It helped to develop the Partnership for Carbon Accounting Financials (PCAF), which has now been adopted by over 100 financial institutions worldwide. It is committed to a science-based net zero target by fully understanding its own carbon impacts and those of all its loans and investments.
In April 2021, Triodos became one of the first banks to join the Net-Zero Banking Alliance (NZBA), which reinforces its commitment to addressing climate change.
Unique selling points
- Positive impact. When you bank or invest with Triodos you can be 100 per cent confident that your money is helping to protect the planet, instead of harming it.
- Fully transparent. Triodos publishes details of the organisations it finances on its website, so you can see exactly how your money is being used.
Plus points
- Mobile app. See all of your accounts in one place, make payments, check your balance and transactions, set up text alerts to monitor your budgets and spending.
- Eco-friendly card. Triodos’ contactless Debit Mastercard is made from renewable resources like plant leaves and corn. It’s biodegradable and recyclable.
- Perks for referred customers. When you refer a friend who opens a current account, Triodos will donate £25 to a charity on your behalf. The new customer will be sent a £60 voucher to spend with one of its business partners.
Any drawbacks?
- Monthly fee. Triodos charges a flat fee of £3 per month for its current account. You might feel, though, that this is a fair price to pay for making a guaranteed positive impact with your money and avoiding the ‘hidden fees’ and high overdraft interest rates of many high street banks.
- Fee for foreign transactions. There is a 2.5 per cent charge for using your debit card abroad (see below)
Cost of use
The personal current account comes with a flat fee of £3 per month. It has a maximum £2,000 overdraft facility with an interest rate of 18 per cent EAR variable for each day you use it.
You will be charged 2.5 per cent to use your debit card overseas, so it could be worth looking at an additional debit or credit card for holidays.
For investing, there is a 0.4 per cent annual service charge, which is charged on a monthly basis.
How does this cost compare with competitors?
Nationwide Building Society offers a free basic current account, or you can opt for a FlexPlus account with the added benefits of mobile phone and travel insurance for £13 a month. You’ll pay no overdraft interest for the first 12 months, followed by a steep 39.9 per cent.
Starling Bank has no monthly fees and arranged overdraft interest is charged at 15 per cent. It also offers 3.25 per cent AER on positive balances up to £5,000.
The Cumberland Plus Current Account from Cumberland Building Society has no monthly fee and the interest on an arranged overdraft is 14.99 per cent.
Top 7 ethical current accounts
Other options
Triodos is the only truly sustainable bank – that can prove it makes a positive impact with your money – in the UK. However, some other ethical options are:
Top sustainable investment platforms
Are there any providers you desperately want us to go deeper on? Let us know here.
