Banks are keeping savers in the dark over the use of their savings, according to new research from Triodos Bank.
The ethical lender found that just 3% of savers feel that banks are transparent about what happens to their savings once deposited.
The research also uncovered that bank customers have strong feelings about how their money is invested, with 53% of savers saying they’d be concerned if they knew their bank was lending money to exploitative goods production (i.e. sweatshops).
Over half the respondents (54%) claimed they would vote with their feet and consider switching providers if they knew their bank was using their deposits to fund contentious sectors.
Savers need more information
Triodos also found 85% of savers agreeing that more information should be freely available about what happens to money saved with a bank.
Charles Middleton, managing director at Triodos Bank said: ‘UK consumers want and deserve a full understanding of where their money is being invested and lent, so they can make informed decisions about where to deposit their savings.
‘We therefore urge the major banks to make their business models transparent to customers, with clear reporting on all levels of business.’
Triodos accounts are not covered by the Financial Services Compensation Scheme (FSCS), but rather under the Dutch system. While the cover levels are similar, you would have to put in a claim under the Dutch system should Triodos go bust. As a result, Triodos accounts are not included in Which? Best Rate tables.
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