Switching your current account to a bank that doesn’t support the fossil fuel industry is a quick and satisfying win for anyone without an overdraft. The fossil-fuel industry is the world’s biggest driver of climate change. Switching from one of the worst banks in the US to one of the best could have a bigger impact than going vegan!
How to Switch
Switching bank accounts is much easier than it once was thanks to the Current Account Switch Service. Simply open the account with your chosen bank, chose a switch date and your wages and direct debits should all be switched over automatically. In my experience, a few subscriptions may fall through the loop. I used this as an opportunity to review any subscriptions before re-implementing the ones I wanted to continue with.
If you have an overdraft you may wish to clear this first as this gives you more choice about where to switch. If you are about to apply for a mortgage or remortgage, consider doing this first as switching accounts can affect your credit rating, especially if you are switching away from an account that you have had for many years.
Which Banks to Avoid
Switching bank accounts will have a bigger impact if your bank is one of the bigger investors in the fossil-fuel industry. The UK banks with the biggest investments in fossil-fuels are:-
- Barclays
- HSBC (this includes First direct)
- Chase
- Santander
If you use another UK bank, see how your bank compares here.
The US is home to some of the banks that are the biggest investors in the fossil-fuel industry. Switching away from one of these big offenders will have the most impacts:-
- JP Morgan
- Chase
- Wells Fargo
- Citi
Finding the Good Guys
If your bank is not particularly green and you want to move your account as a result, what are the alternatives? Bank Green has a list of sustainable banks in the UK. Look out for fees as some accounts from this list charge a fee for their current account.
If you are happy to bank entirely online, then consider Starling Bank. Starling bank state that their investment portfolio is fossil-fuel free. They are also committed to net zero. I switched to Starling Bank a couple of years ago. The switch was relatively painless and the user experience is really good. The app allows you to categorise spending to get insights into your outgoings. You can create savings “pots” within your account which helps with budgeting. There is also a “split the bill” function that is handy for work functions etc. On the downside, they recently received a big fine for their poor anti-money laundering safeguards and they are about to axe interest payments on positive current account balances.
Readers from the US can find US based sustainable banks using Bank Green’s USA data here.
Further Reading
You may also like: How to Start or Switch to a Fossil-Fuel Free Pension.
The Art of Green Finance 
Leave a reply to How to “spring clean” your finances for the new tax year. – The Art of Green Finance Cancel reply