An Ethical Current Account

A viewer of BBC2’s Working Lunch TV programme asked if any UK bank offers an ethical current account. The answer was yes, but presently only one bank provides such a service.

The Co-Op ! 

The Co-Operative Bank and their online sister bank, Smile.co.uk offer the only current accounts linked to ethical investments of client funds.

The Co-Op’s ethical policy states they will not invest in companies involved with:-

• Poor human rights issues.
• The fur trade.
• Arms manufacturing.
• Tobacco manufacturing.
• Genetic modification.
• Producing a negative ecological impact.
• Plus many more.

See details of the Co-Op’s Ethical Policy

Elsewhere on this debt advice blog we explain why it is unwise to have debts with your bank.

When our clients’ enter into a debt management programme (DMP) or IVA, if they have debts with their bank, they will normally need to open a new bank account with someone they have no debts with. This provides a safe haven for their money. This way, none of their creditors have greater access to owed money than others.

Many people entering a DMP or IVA already have some adverse credit and find problems opening a new bank account.

What they must ask for is a non-credit bearing account as this will not require a credit check as the client can not go into debt with such an account. This is also called basic bank account.

The Co-op offer such an service called the CashMinder account. This is a account we often recommend to customers with adverse credit, but needed a fresh banking facilities. It can all be arranged over the phone.

Don’t worry about their not being as many high street branches of the Co-Op as the major banks. I’m with one of the major banks and have not need to set foot inside a branch for years. I pay in all my cheques by post. The time and effort spent making my way to my nearest branch costs me more than a one day delay and price of the stamp.

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