Are you brave enough to play trick or treat with your finances this Halloween? Find out if you’ve been tricked and how you can treat yourself (and the planet) to better money choices.
TRICK: Your money is with one of the Big Five high street banks
So you chose a big high street bank when you turned 18 because it offered a good deal on student finances, or your parents had always banked with them – and you’ve been loyal to them ever since. That’s all good, isn’t it? TRICK! If you bank with one of the Big Five banks (Barclays, Santander, Lloyds, NatWest or HSBC), your money is almost certainly helping to fund climate change. According to campaign group Make My Money Matter, in 2023 alone, these banks provided a terrifying $55 billion (£43 billion) to fossil fuel companies – the biggest contributor to climate change.
TREAT: Move your money to an ethical bank or building society
Ethical banks and building societies are committed to not investing in industries that damage our planet or society. Some, like Good Egg firm Triodos, go even further by only investing in companies and organisations that make a positive impact. These providers believe that profitability should not only be measured in financial terms, but also in social and environmental terms. Moving your money to a more responsible provider increases pressure on those that support destructive industries to reduce these investments.
The UK’s most ethical banks and building societies
TRICK: You don’t know where your pension is invested
When it comes to pensions, it can be tempting not to give it too much thought – as long as you’re paying into one that’s the main thing, right? TRICK! Yes, having a pension at all is a major win. But when you consider this is probably the biggest pot of money you’ll ever have, it matters where it’s invested. Not just for your own financial future, but for the planet’s. There is currently £3 trillion held in UK pensions, but right now, it’s mostly invested in companies driving deforestation and funding fossil fuels. UK pension schemes invest a shocking £88 billion in fossil fuel companies. That’s £3,000 per pension holder in businesses like Shell and BP. Plus, for every £10 you put in your pension, £2 is linked to deforestation.
TREAT: Green your pension
Greening your pension is THE most powerful thing you can do to help protect the planet. Our pensions have the potential to invest £1 trillion in climate solutions – like renewable energy – by 2035. This is HALF of the money needed to reach the UK’s 2050 net zero goal, and would not just help the planet, but your wallet too. See how your pension provider ranks on the climate here and if you’re not happy with the result, make a change.
Top 8 ethical pension funds in 2024
TRICK: You haven’t moved your savings in a while
So you put a bit of money aside each month, and it’s easy just to use the savings account provided by your bank. But do you know what the interest rate is, and what your money is being used for? If not, you’re being TRICKED! Recent research by Invested Bank shows that more than two out of five savers have not moved any of their cash to accounts paying higher rates during the past two and a half years despite Bank of England base rate changes. Not only is this a bad deal for your pocket, if you bank with one of the Big 5, it’s also a bad deal for the planet. They are beset by issues such as investment in fossil fuels, executive pay and fair treatment of customers.
TREAT: Choose sustainable savings
By putting your savings with an ethical specialist you know you are using the power of your money for good. Providers like Good Egg mark firms Ecology Building Society and Triodos Bank as well as Charity Bank use their customers’ deposits to fund only those organisations delivering positive environmental or social impacts. They are also most likely to give their customers fair interest rates on savings. See our top-paying sustainable savings accounts here.
Top 9 ethical savings accounts in 2024
Did you get a fright? Don’t be too spooked, making more conscious choices with your money means you’ll be haunted no longer..
Want more? Follow these eight easy steps to greening your money.
