Ethical investing: how you can do a power of good

Good Money Week kicks off today, with the aim of highlighting the sustainable and ethical options when it comes to your bank, pension, savings and investments.

If you don’t want to hand over your cash to one of the “big four” banks, there are a number of players worth considering, including Triodos Bank, Charity Bank and Ecology building society. All offer savings accounts, while Triodos also has a current account which can be managed online and via the mobile app, but carries a £3 monthly fee.

Charity Bank lends to charities and social enterprises. It has a one-year fixed-rate account paying 1.3% and a 33-day notice cash Isa at 1.07%.

To coincide with Good Money Week (formerly National Ethical Investment Week), running until 5 October, the bank has launched a Follow the Money campaign, which has seen 38 charities and social enterprises open their doors so savers can see where and how their money is being used.

These include Holne Community Shop & Tea Room in Dartmoor national park in Devon. When the shop and tearoom faced closure, the community united to save what was an important social hub. They formed a committee and now it is run for the benefit of the wider community. In 2014, the social enterprise received a £75,000 loan from Charity Bank to help buy the premises. As secretary Gilly Simpson says: “It has proved an invaluable resource. Not only do tourists walking or cycling in the park flock to the tea room, it also provides a great meeting place. It’s a lifeline for those who might otherwise struggle with loneliness and isolation.”

If you are interested in a green or ethical slant, the Ethex platform has helped raise millions for social businesses, charities and community organisations. Its website lists several schemes, including share offers from Stockwood Community Benefit Society, which operates a farm and business park in Worcestershire and is targeting a potential 5% return for investors; and from Bristol’s Exchange, which has launched a campaign to raise £250,000 to turn the premises into the city’s first community-owned live music venue, and is offering rewards and a potential 3% return.