Choosing an ethical business savings account is a powerful way to ensure your company’s finances reflect its commitment to sustainability.
While you earn interest, your deposits can be used to make a positive impact on the wider world – or at the very least, not contribute to harming it.
The ‘Big 5’ UK banks – Barclays, Lloyds Banking Group, Santander, HSBC, and Natwest – are the top culprits for investing in practices that are destructive to the environment such as fossil fuels, tobacco, oil, and/or weapons production.
Ethical banks, meanwhile, have greener investment and lending policies and pay their fair share of tax. They are also increasingly offering competitive interest rates compared to the Big 5. For example, Barclays Bank is currently offering its business customers savings rates of up to just 1.91 per cent – decreasing to 1.81 per cent from March.
It doesn’t have to be a hassle to move your business banking for good. If you own a small or medium-sized business (SME) with less than 50 employees and a turnover of up to £6.5 million, the Current Account Switch Service will take care of everything for you.
Here are our top eight options for an ethical business savings account.
(Interest rates correct as of January 2025)
Unity Trust Bank
If you’re a socially-minded business, the chances are you’ll love Unity Trust Bank.
Unity, a Good With Money ‘Good Egg’ firm, prioritises social good. It uses savings deposits made by your business to fund lending that supports the communities that you and it collectively serve. This means that by banking with Unity (the number one bank for Trade Unions), you are helping to contribute to economic, community and social change.
Unity offers two types of business savings accounts:
- Instant access accounts, for those who want to know they can access their savings at any time. The interest rate is 2.50 per cent AER (variable, which means it can go up or down).
- Fixed term deposit accounts. This for you if you’re happy for your business savings to be untouched for a fixed period and have £50,000 to deposit (rather than wanting to make regular payments). You’ll receive a set amount of interest when the account matures. Interest rates range from 2.96 per cent AER for a 30-day term to 4.25 per cent AER for a 12-month term.
Triodos Bank
Triodos, another Good With Money ‘Good Egg’ firm, provides specialist, sustainable finance for businesses and organisations that are working to tackle the world’s biggest challenges. Triodos publishes details of every organisation it lends to on its website, so you know how your organisation’s money is being used to achieve positive and lasting change.
While a relaunch of the popular business current account from Triodos still isn’t on the horizon, it recently launched two types of business savings accounts:
- Business and charity deposit accounts with a range of instant access or notice periods to suit your business. Interest rates start at 1.65 per cent gross/166 per cent AER for instant access on savings of up to £5,000, rising to 3.20 per cent gross / 3.24 per cent AER for 90 days notice on balances of £250,000 and over. To apply, you must be a UK-based business with a minimum deposit of £50,000 (if you’re a new customer).
- Fixed term deposit accounts, where you lock your money away for a fixed term in exchange for a higher interest rate. Interest rates are 3.80 or 4 per cent gross/AER for a six or 12 month term respectively.
Top 10 ethical business current accounts
Charity Bank
Charity Bank utilises your business savings to help create lasting social change in UK communities.
The bank invests its customers’ savings into small and large charities and social enterprises around the country. Therefore, your money might be used to build affordable homes, launch renewable energy projects or to foster peace among young people in divided communities – while also earning interest for you.
It offers four types of business savings accounts:
- Business Fixed Rate Account. For deposits of £10,000 t0 £500,000 the interest rate is 4.26 per cent AER over a one year term.
- Business Easy Access Account. With total flexibility over access to your money, the interest rate is 3.12 per cent gross / 3.16 per cent AER.
- Business Notice Accounts. Terms range from 40 to 100 days with interest starting at 3.01 per cent gross / 3.04 per cent AER.
- Community Investment Tax Relief Base Rate Tracker (Business) Account. This is available to organisations that are liable to pay corporation tax in the UK.
Reliance Bank
Reliance is part of The Salvation Army, and its mission is to “serve customers and communities with compassion and integrity”. As such, it is a bank with a socially responsible conscience. Reliance prioritises its business lending to organisations that are delivering positive social impact in the UK.
- Reliance offers a range of fixed-term business savings accounts from six months to two years with interest rates from 4.05 per cent AER to 4.45 per cent AER. Interest is calculated daily and paid at the end of the term.
Allica Bank
Allica is a bank designed especially for established businesses with between five and 250 employees.
The bank says it will not provide banking services “to any business that is heavily involved in industries we deem as harmful, such as extractive industries or animal testing.”
It offers an instant access Savings Pot paying up to 4.83 per cent AER (variable) as part of its Business Rewards Account. This rate includes a standard rate of 3.83 per cent AER, plus a 0.5 per cent boost each month if you make 15 bank transfers the previous month, and a 0.5 per cent boost for six months if you complete a successful switch with the Current Account Switch Service (CASS).
The Co-operative Bank
The Co-op will not provide banking services to organisations that conflict with its customers’ views on a comprehensive range of issues including human rights, environmental stability, international development and animal welfare, or those involved in irresponsible gambling or payday lending.
Last year it was bought by Coventry Building Society, which in 2023 became the first UK building society to achieve B Corp status.
The Co-op offers three business savings account options:
- 90 Day Notice, with an interest rate 2.40 per cent/ 2.42 per cent (variable) calculated daily and paid twice a year.
- 35 Day Notice, with an interest rate of 2.04 per cent AER (variable) calculated daily and paid twice a year.
- Business Select Instant Access, with an interest rate of 1.53 per cent gross/ 1.53 per cent AER (variable) calculated daily and paid twice a year.
Tide
Tide offers business current accounts provided by Clear Bank to companies of all shapes and sizes, including freelancers, small and limited businesses and those scaling up.
The money in your Tide account is held in a secure ring-fenced account. This account is not used for any type of investments therefore your money is safe, and not used to invest in harmful industries.
Tide offers an instant access savings account paying up to 4.07 per cent AER. This includes a 0.78 per cent AER boost for new customers until June 01, 2025. After this the rate reverts to 3.29 percent AER. There is no interest earned on balances over £75,000. You don’t need to have a Tide business current account to open a business savings account.
Cumberland Building Society
The Cumberland offers business banking to customers living in Cumbria, South West Scotland, West Northumberland and North Lancashire. Its building society status means it does not invest its members’ money in stocks and shares. Therefore, many of the issues normally associated with ethical investment do not apply to it.
The Society offers four business savings account options:
- Cumberland Business Instant Access, with a variable interest rate up to 2.95 per cent Gross/AER
- One Year Fixed, with a fixed interest rate of 3.85 per cent Fixed Gross/AER until 28 January 2026
- Cumberland Business eSaver, with a variable interest rate up to 3.15 per cent Gross/AER
- Cumberland Business 30 Day Notice, with a variable interest rate up to 3.45 per cent Gross/AER
With all of the above options, your money is protected by the Financial Services Compensation Scheme up to £85,000.
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