Brand Logo Moneyfacts Group plc
Telephone Icon T: 01603 476476 Email Icon E: enquiries@moneyfacts.co.uk LinkedIn Icon

Green products continue to offer different options

Image of Moneyfacts.co.uk Brand Logo Image of Moneyfacts.co.uk Brand Logo Image of Moneyfacts.co.uk Brand Logo
James Hyde, Press & PR Manager
James Hyde, Press & PR Manager T: 01603 476205 E: Email James
21/05/2024

Green products continue to offer a different option to consumers

With sustainability-led credentials continuing to influence where consumers put their money, Moneyfactscompare.co.uk discusses providers and products with a ‘green’ focus.

Green products continue to offer a different option to consumers

With sustainability-led credentials continuing to influence where consumers put their money, Moneyfactscompare.co.uk discusses providers and products with a ‘green’ focus.

  • There are eight providers currently offering ‘green’ labelled or focussed savings products in the UK market, some of which have a similarly sustainable focus across their entire portfolio and the company itself.
  • Triodos Bank and Ecology Building Society are two such providers with a clear focus around working and investing sustainably.
  • The number of products with a stated ‘green incentive’ has grown by over 25% in the past 12 months.
  • However, the substance of ‘green’ incentives can differ.
  • The Financial Conduct Authority will soon implement anti-greenwashing regulations to ensure that sustainability-related claims about products and services must be fair, clear, and not misleading.
  • There are eight providers currently offering ‘green’ labelled or focussed savings products in the UK market, some of which have a similarly sustainable focus across their entire portfolio and the company itself.
  • Triodos Bank and Ecology Building Society are two such providers with a clear focus around working and investing sustainably.
  • The number of products with a stated ‘green incentive’ has grown by over 25% in the past 12 months.
  • However, the substance of ‘green’ incentives can differ.
  • The Financial Conduct Authority will soon implement anti-greenwashing regulations to ensure that sustainability-related claims about products and services must be fair, clear, and not misleading.

 

Moneyfacts analysis of 'green' savings accounts

Provider

Number of ‘green’ savings accounts options

Highest-paying ‘green’ account (£10,000 gross)

Stated ‘green’ incentive

Castle Trust Bank

7

Fixed Rate E-Saver – 4.85% (1 year)

Tree planted when selected product opened and funded

Ecology Building Society

5

180-Day Notice – 4.75%

Provider has environmentally focussed ethos

Gatehouse Bank

13

6 Month Fixed Term Woodland Saver – 5.22%

Tree planted when selected product opened and funded

National Savings & Investments

1

NS&I Green Savings Bonds Issue 7 – 2.95% (3 year)

HM Treasury allocates funds from Green Savings Bonds to chosen green projects

RCI Bank UK

1

RCI Bank E-Volve Savings 14 Day Notice Account – 4.80%

Funds will be used to support financing of electric vehicles and infrastructure

State Bank of India

2

Green Fixed Deposit – 4.35% (5 year)

Funds will only be used towards environmentally friendly lending/green mortgages portfolio.

Tandem Bank

4

1 Year Fixed Saver – 5.07%

Supports green lending initiatives

Triodos Bank

6

Triodos Ethical Savings Bond – 4.25% (1 year)

Provider has environmentally focussed ethos

Correct as at 16.5.2024. Source: Moneyfactscompare.co.uk

 

 

 

Moneyfacts analysis of 'green' savings accounts

Provider

Number of ‘green’ savings accounts options

Highest-paying ‘green’ account (£10,000 gross)

Stated ‘green’ incentive

Castle Trust Bank

7

Fixed Rate E-Saver – 4.85% (1 year)

Tree planted when selected product opened and funded

Ecology Building Society

5

180-Day Notice – 4.75%

Provider has environmentally focussed ethos

Gatehouse Bank

13

6 Month Fixed Term Woodland Saver – 5.22%

Tree planted when selected product opened and funded

National Savings & Investments

1

NS&I Green Savings Bonds Issue 7 – 2.95% (3 year)

HM Treasury allocates funds from Green Savings Bonds to chosen green projects

RCI Bank UK

1

RCI Bank E-Volve Savings 14 Day Notice Account – 4.80%

Funds will be used to support financing of electric vehicles and infrastructure

State Bank of India

2

Green Fixed Deposit – 4.35% (5 year)

Funds will only be used towards environmentally friendly lending/green mortgages portfolio.

Tandem Bank

4

1 Year Fixed Saver – 5.07%

Supports green lending initiatives

Triodos Bank

6

Triodos Ethical Savings Bond – 4.25% (1 year)

Provider has environmentally focussed ethos

Correct as at 16.5.2024. Source: Moneyfactscompare.co.uk

 

 

James Hyde, Spokesperson at Moneyfactscompare.co.uk, said:

“While rate continues to be a compelling motivation for those making financial decisions, it’s important to remember that there may be other factors at play for consumers considering their options. For example, some will want to invest in companies that possess a clear green focus.

“There are currently 39 savings account options available in the UK which are listed as possessing a ‘green incentive’. This is up from 30 a year ago, although it’s important to remember that some ‘green’ components will be more significant than others.

“Some providers commit to planting a tree every time a qualifying savings account is opened, while others will demonstrate more of a holistic focus around sustainable banking. For example, Triodos Bank uses all deposits to finance green and community initiatives, co-financing 640 renewable energy projects and 42,900 hectares of nature and conservation in 2023 alone.

“Meanwhile, Ecology Building Society funds sustainable community projects, including Passivhaus development and eco renovation schemes.

“In addition, app-only providers will naturally have lower carbon emissions, due to the lack of paper, printing, and physical premises required. In these cases, they are often able to be more competitive on rate as they have reduced costs as a result of their business model. However, a defining factor of company’s eco-credibility is how they invest the money entrusted to them, so it’s important to consider this when making decisions.

“Some consumers may have to compromise on maximising their financial returns if they want to bank as sustainably as possible, however – some green providers choose not to compete at the top end of the market due to the increased costs of investing in certain areas or practices.

“The Financial Conduct Authority’s regulations around ‘greenwashing’ practices come into effect on 31 May, and it remains to be seen how this will impact this space going forward.”

 

Roger Hattam, Director of Retail Banking at Triodos Bank UK, said:

"Until better regulation is introduced and there are clearer definitions of what ‘green’ means, it is still down to savers to do their own research into the options. Banks use the money they hold to lend or invest in companies. They therefore have a critical role to play in the sectors that money is directed towards and shaping the future we want to see.

“The promotion of accounts with taglines such as ‘plant a tree’ can be misleading as it is more relevant to look at the provider’s broader lending and investment policy, target setting and transparency on carbon emissions. We’re proud to have been a frontrunner in this area for almost 30 years in the UK. We have never supported environmentally destructive areas such as fossil fuel expansion, intensive agriculture or deforestation – instead choosing to finance areas such as renewable energy, nature conservation and organic food & farming.”

 

James Hyde, Spokesperson at Moneyfactscompare.co.uk, said:

“While rate continues to be a compelling motivation for those making financial decisions, it’s important to remember that there may be other factors at play for consumers considering their options. For example, some will want to invest in companies that possess a clear green focus.

“There are currently 39 savings account options available in the UK which are listed as possessing a ‘green incentive’. This is up from 30 a year ago, although it’s important to remember that some ‘green’ components will be more significant than others.

“Some providers commit to planting a tree every time a qualifying savings account is opened, while others will demonstrate more of a holistic focus around sustainable banking. For example, Triodos Bank uses all deposits to finance green and community initiatives, co-financing 640 renewable energy projects and 42,900 hectares of nature and conservation in 2023 alone.

“Meanwhile, Ecology Building Society funds sustainable community projects, including Passivhaus development and eco renovation schemes.

“In addition, app-only providers will naturally have lower carbon emissions, due to the lack of paper, printing, and physical premises required. In these cases, they are often able to be more competitive on rate as they have reduced costs as a result of their business model. However, a defining factor of company’s eco-credibility is how they invest the money entrusted to them, so it’s important to consider this when making decisions.

“Some consumers may have to compromise on maximising their financial returns if they want to bank as sustainably as possible, however – some green providers choose not to compete at the top end of the market due to the increased costs of investing in certain areas or practices.

“The Financial Conduct Authority’s regulations around ‘greenwashing’ practices come into effect on 31 May, and it remains to be seen how this will impact this space going forward.”

 

Roger Hattam, Director of Retail Banking at Triodos Bank UK, said:

"Until better regulation is introduced and there are clearer definitions of what ‘green’ means, it is still down to savers to do their own research into the options. Banks use the money they hold to lend or invest in companies. They therefore have a critical role to play in the sectors that money is directed towards and shaping the future we want to see.

“The promotion of accounts with taglines such as ‘plant a tree’ can be misleading as it is more relevant to look at the provider’s broader lending and investment policy, target setting and transparency on carbon emissions. We’re proud to have been a frontrunner in this area for almost 30 years in the UK. We have never supported environmentally destructive areas such as fossil fuel expansion, intensive agriculture or deforestation – instead choosing to finance areas such as renewable energy, nature conservation and organic food & farming.”

 

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Contact Us If you're looking for extra comment, a chart or more information, then please give us a call. We are always more than happy to help.
James Hyde Press & PR Manager
Rachel Springall Press Officer / Finance Expert
Caitlyn Eastell Apprentice Press & PR Assistant