It’s easy to overlook that where we keep our money has consequences far beyond our own finances.
Research shows the UK’s biggest banks – HSBC, Barclays, NatWest, and Lloyds – continue to invest heavily in fossil fuels. Between 2020 and 2024, these four poured £119 billion into fossil fuel projects. That’s nearly double what they invested in green ventures, according to InfluenceMap.
Lloyds invested 3.1 times more in fossil fuels than in green initiatives. HSBC and Barclays followed closely, with 2.9 and 1.8 times more, respectively. In 2024 alone, Barclays provided $35.4 billion (£26 billion) in fossil fuel financing — a 55 per cent increase year-on-year – making it Europe’s biggest fossil fuel funder, according to the Banking on Climate Chaos report.
Why switch to an ethical current account?
Switching your current account is one of the most effective ways to align your finances with your values and fight climate change. Ethical banks and building societies avoid funding harmful industries like fossil fuels, arms and tobacco, and some – like Triodos Bank – go further by using your money to drive positive change.
Switching is easy. The Current Account Switch Service moves your payments and closes your old account for you, hassle-free.
Here are five current accounts that lead on ethics:
1. Triodos Bank
- Monthly fee: £3
- Fossil fuel exposure: None
- Positive impact investment: Yes
- Overdraft: No
- FSCS protected: Yes
- Good With Money ‘Good Egg’ firm
Triodos is the UK’s leading ethical bank, financing only projects that deliver social, environmental, or cultural benefit, from renewables to social housing. It excludes fossil fuels, arms, tobacco, and deforestation.
The bank publishes every organisation it lends to, making it uniquely transparent. It’s a certified B Corp and has earned Ethical Consumer’s only 100/100 score for company ethos.
The mobile app includes budget tracking and helpful alerts, and its debit card is made from low-impact recycled plastic. Bear in mind, however, that Triodos no longer offers an arranged overdraft.
Read our full review of Triodos Bank
How to divest your money from fossil fuels
2. The Co-operative Bank
- Monthly fee: £0 – £15
- Fossil fuel exposure: None
- Positive impact investment: Some
- Overdraft: Yes
- FSCS protected: Yes
The Co-operative Bank, soon to return to mutual ownership via Coventry Building Society, has upheld an ethical policy since 1992. It avoids lending to fossil fuels, arms and unethical industries, and uses a robust screening process for businesses.
It offers a free standard current account or the £15 per month Everyday Extra with insurance perks. Ethical Consumer and Which? both recognise its high ethical standards.
The UK’s most ethical banks and building societies
3. Nationwide Building Society
If you’re a member, you can switch your main account to Nationwide’s FlexPlus, FlexDirect or FlexAccount using the Current Account Switch Service online and get £200. Ending 10 July.
- Monthly fee: £0 – £18
- Fossil fuel exposure: Indirect (via its acquisition of Virgin Money)
- Positive impact investment: Yes (e.g., social housing)
- Overdraft: Yes
- FSCS protected: Yes
As the UK’s largest mutual, Nationwide is owned by its members. It discloses emissions linked to its lending, with science-based targets to cut them. However, its recent acquisition of Virgin Money has raised ethical concerns, as Virgin has exposure to fossil fuels.
Accounts include the fee-free FlexDirect (with 5 per cent AER for 12 months and a £50 overdraft buffer) and the £1 per month FlexPlus with bundled insurance. Nationwide also offers cashback and exclusive savings for account holders.
It was recently dropped from Which?’s Eco Providers list following its purchase of Virgin Money and has faced criticism for high executive pay.
4. Cumberland Building Society
- Monthly fee: £0
- Fossil fuel exposure: None
- Positive impact investment: Limited (local community focus)
- Overdraft: Yes
- FSCS protected: Yes
Cumberland, based in Cumbria, avoids all stock market and overseas investments, keeping members’ money local. It doesn’t fund fossil fuels or invest outside the UK. Its social impact work includes tackling food poverty via the Kinder Kind of Kitchens initiative.
The Cumberland Plus account has no monthly fee, with a competitive overdraft rate (14.99 per cent EAR). Applicants must pay in at least £750 per month. The building society also offers specialist accounts for young people and apprentices.
5. Starling Bank
- Monthly fee: £0
- Fossil fuel exposure: No direct funding
- Positive impact investment: None
- Overdraft: Yes
- FSCS protected: Yes
App-based Starling avoids direct fossil fuel investment and offers an intuitive digital experience. It powers its offices with renewable energy and uses recycled plastic for its debit cards. Its tree-planting referral programme has added 60,000 trees.
However, it lacks a clear positive investment strategy and has been criticised for accepting funding from Qatar’s sovereign wealth fund, which is tied to fossil fuel revenues.
Starling charges no monthly fees and offers tiered overdraft rates based on creditworthiness.
Read our full review of Starling Bank
Ready to switch? Your money has power. Move it to a bank that aligns with your ethics.
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.
If you’d like to find out more about the above providers, a Which? membership gives you access to in-depth, expert reviews, ‘Best Buys’ and ‘Don’t Buys.’
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.
