Four in five don't know where their bank invests their moneyNew research reveals lack of ethical awareness

07 September 2011

Green piggy bank on grass

It is possible to find savings accounts with competitive rates and a clear ethical policy

78% of Britons don’t know where their banks invest their money, according to new research conducted for Charity Bank.

The findings of the poll, conducted by Vision Critical, also reveal that only half (51%) care where their Isa deposits are invested. The survey polled more than 2,000 UK consumers.

Charity Bank's own notice cash Isa, currently paying 2.5% AER, is a Which? Best Rate account. And yet, only 13% of those surveyed were aware that an Isa exists which invests 100% of their money in helping charities and other community organisations.

Charity Bank chief executive Malcolm Hayday said: 'The survey results show that people do care where their savings go, but there is still a lot of work to be done to raise the profile of ethical banking.

'There is still a lack of knowledge and understanding of ethical saving amongst the general British population. It is our responsibility to educate the public about the importance of ethical saving – and how easy it can be to do!'

New ethical finance campaign

The research is published as Charity Bank launches an education campaign, named 'Think ethical, save ethical', in the run up to this year's National Ethical Investment Week, which starts on 16 October.

Which? principal researcher Martyn Saville commented: 'For some consumers, the return on their savings is the most important factor, while for others it's important to know that their money is invested in a socially or environmentally responsible manner. Luckily, you can now have both.

'Banks like Charity Bank and the Co-operative Banking Group show that it is possible to offer top-value products as well as a clear ethical policy. Charity Bank offers a Best Rate children's savings account and notice cash Isa, while the Co-operative is a Which? Recommended Provider for savings.'

More on this...

  • Ethical investments - read the Which? guide to finding an ethical home for your money
  • Best Rate notice cash Isas - check how the Charity Bank cash Isa compares with other leading accounts
  • Children's savings accounts - all the best accounts to get your kids into the savings habit