If you run an ethically-minded business, it makes sense to bank with a provider that aligns with your values.
But when it comes to business banking, the UK’s ‘Big Five’ banks – Barclays, Lloyds Banking Group, Santander, HSBC, and NatWest – continue to dominate the market, holding the vast majority of small and medium-sized business accounts.
These same institutions remain among the biggest global financiers of fossil fuels and other industries linked to environmental and social harm. According to former campaign group Make My Money Matter, the UK’s largest banks have collectively channelled tens of billions of pounds into fossil fuel companies in recent years.
By contrast, ethical banks tend to have stricter lending policies, clearer exclusions on sectors such as fossil fuels, arms and tobacco, and stronger commitments to transparency and tax responsibility.
While ethical options for business banking are still more limited than for personal accounts, there is now a range of credible alternatives. And switching is straightforward. If you run a small or medium-sized business with fewer than 50 employees and a turnover under £6.5 million, the Current Account Switch Service can move your account within seven working days.
All the providers below are covered under Financial Services Compensation Scheme (FSCS), meaning eligible deposits are protected up to £120,000 per authorised institution under the current rules.
1. Unity Trust Bank
Unity Trust Bank specialises in lending to organisations that create positive social impact, including charities, social enterprises and local authorities. It is widely regarded as one of the UK’s most values-driven business banks.
Deposits are used to fund lending aligned with the UN Sustainable Development Goals, with a significant proportion directed towards organisations operating in areas of high deprivation.
Unity – a Good With Money ‘Good Egg’ firm’ – offers business current accounts tailored by turnover, with monthly fees of £7 (charged quarterly). Online banking includes options for dual and triple authorisation, which can suit charities and community organisations.
Unity supports Open Banking, which may allow connection to third-party tools via authorised providers (depending on the platform).
One limitation is the absence of a standard debit card. Cash services are available through NatWest and RBS branches, and card spending is offered via a separate corporate charge card arrangement.
Best suited to: charities, social enterprises, co-operatives and values-led SMEs.
Unity Trust Bank: 40 years of banking for impact
2. Co-operative Bank
The Co-operative Bank has one of the longest-standing ethical policies in UK banking. It explicitly refuses to bank for organisations involved in areas such as fossil fuel extraction, arms manufacturing, human rights abuses, animal cruelty and payday lending.
In May 2024, Coventry Building Society agreed to buy the bank, and the acquisition completed on 1 January 2025 – but the bank continues to operate under its existing brand and ethical framework.
It offers a range of business current accounts, including specialist options for charities, co-operatives and members of the Federation of Small Businesses.
The bank supports Open Banking feeds, allowing businesses to connect to popular accounting platforms.
Best suited to: small businesses wanting mainstream banking functionality with a clear ethical policy.
3. Cumberland Building Society
Headquartered in Cumbria, Cumberland Building Society offers business current accounts as part of its regional commercial banking proposition, alongside online and mobile banking.
Cumberland also supports a Xero direct bank feed for business current account customers.
As a mutual building society, it does not invest members’ deposits in stock markets in the same way shareholder-owned banks do. It also donates a proportion of profits to charity and has committed to carbon neutrality targets.
Accounts come with a debit card, online banking and optional overdrafts. Monthly fees range from free to around £3-£5 depending on the account type, with introductory free banking offers available for smaller businesses.
Cumberland supports integration with accounting software such as Xero.
Best suited to: regionally based SMEs seeking local, relationship-led banking.
Top 7 ethical current accounts
4. Starling Bank
App-based Starling has become a go-to for freelancers and small businesses who want slick digital banking without a monthly fee.
The standard business account is free, includes a Mastercard debit card and offers 24/7 in-app support. It integrates smoothly with Xero, QuickBooks and FreeAgent, and cash can be paid in via the Post Office (for a fee). Optional add-ons – such as bookkeeping tools and multi-currency accounts – come at extra cost.
On the ethics front, Starling says it does not invest in the fossil fuel industry. Customer deposits are largely held in government securities and other high-quality liquid assets. As a branchless bank, it operates with a lower carbon footprint than traditional high street banks.
Best for: freelancers and small SMEs who want fully digital banking with clear fossil fuel exclusions – and don’t need a physical branch.
Read our full review of Starling Bank
5. Tide
Tide is a financial technology company rather than a bank, providing business accounts through its partnership with ClearBank.
It offers tiered pricing plans ranging from a free account (with per-transfer charges) to premium packages with unlimited transfers, expense cards and cashback.
Eligible deposits in the Tide Business Current Account are held with ClearBank and are FSCS protected (subject to eligibility). Tide also provides integrated invoicing, expense management and accounting software connections.
Best suited to: startups and fast-growing SMEs seeking flexible pricing and digital tools.
Top 9 ethical savings accounts
6. Reliance Bank
Reliance Bank is majority owned by The Salvation Army and focuses on lending to organisations delivering positive social impact.
Its charity and business current account includes a corporate debit card, cheque facilities and online banking access. Cash and cheque deposits can be made through NatWest and RBS branches.
There is a £7.50 monthly maintenance fee, with transaction charges applying. Online banking is available, though integration with accounting platforms is more limited than with digital challenger banks.
Online banking is available, though integration with accounting platforms is more limited than with digital challenger banks.
Best suited to: charities and socially focused businesses.
7. Monzo
Monzo positions itself as a socially responsible digital bank, stating that customer deposits are not invested in fossil fuel companies, arms manufacturers or tobacco firms.
It offers a free Lite business account and paid Pro and Team tiers with features such as tax pots, accounting integrations and multi-user access.
Some savings products are provided through third-party partner banks, so businesses wanting full transparency over end-use of funds may wish to review those providers separately.
Best suited to: sole traders and small limited companies seeking intuitive digital banking.
8. Allica Bank
Allica Bank focuses on established UK SMEs with between five and 250 employees.
It excludes certain high-risk and environmentally harmful sectors from its lending and offers relationship-managed business banking alongside a fee-free current account and cashback on eligible spending.
Savings products include competitive rates on larger balances.
The bank supports accounting integrations through Open Banking connections.
Best suited to: established SMEs seeking relationship banking outside the traditional high street banks.
If you want to have a savings account, insurance policy, investment fund or mortgage from companies that do the right thing, check out our Good Eggs.
These are companies that have passed strict (independent) criteria to prove they make a positive impact – to the planet, society, and you.
Good With Money occasionally uses affiliate links to providers or offers, where relevant. This means that if you open an account or buy a service after following the link, Good With Money is paid a small referral fee. We choose our affiliates carefully and in line with the overall mission of the site.
