Just over a quarter of Brits want their savings and investments to be more socially responsible this year, according to a survey from ethical bank Triodos.
The new financial year offers consumers a chance to look at their finances, assess what their money is doing and determine how their investments and savings align with their personal values. With the ISA limit being raised to £15,000 selecting an ethical account can have a big difference on the economy and help make it more sustainable.
Huw Davies, head of personal banking at Triodos Bank, said, “With the higher tax allowance coming into play this July there is more of an incentive for people to save. And the sooner you start to save, the sooner you benefit from your tax-free ISA allowance.
“But savers should also consider the wider benefits their ISA can deliver. By choosing to save in an ethical ISA, you can combine a decent financial return with the knowledge that your ISA will be making a real difference to society and the environment.”
He added that whilst personal savings may seem small they could have a much larger impact when combined with the savings of others. For example, 100 savers each putting £15,000 in to their ISA this tax year could finance a community wind turbine and benefit the local people.
Ethical Consumer ranks Ecology Building Society, which focuses lending on property loans with strong ecological criteria, as the best ISA for consumers that want to incorporate their ethics. Charity Bank and Triodos Bank were also named as good alternative options to high street banks.
Anna Laycock, communications and research manager at Ecology, has previously spoken to Blue & Green Tomorrow about the rising demand for ethical ISAs, which has led to the building society restricting who can open an ISA account with them, and the impact this trend could have.
She said, “By choosing an ethical cash ISA, you’re ensuring that your investment is put to use in a way that supports your beliefs. Knowing your money is helping to create the sort of world you want to live in can be just as important as the interest you’re earning.”
Photo: Tac Credits via Flickr