New Research: British Public Are Spending And Saving Ethically To Make A World Of Difference

Mar 15, 2018

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The rise of ‘conscious consumerism’ means that more businesses will need to behave in an ethical and transparent manner according to research published this week by Charity Bank, the ethical bank with a mission to use money for good.

The new research reveals that 64% of British consumers now buy from ethical businesses. Three fifths (60%) of people also believe that businesses should do more to tackle social issues.

Not only are consumers applying these ethical standards when selecting food, clothing, energy suppliers and other everyday products but it is also impacting where and how they invest their money. More than half (56%) believe that their bank does not make it clear how their money is being invested, whilst 57% of people would consider opening a savings account from a bank that demonstrated its ethical values and paid a competitive interest rate.

In response, Charity Bank has launched a campaign to get people to transfer their Cash ISA to an ethical provider.

Justin Hort, Head of Savings at Charity Bank, said: “It is encouraging to see that people are increasingly making conscious ethical purchasing and investment decisions, choosing to spend and invest in line with their values.

“When it comes to banks, the findings tell us that people would like their savings to be used ethically and would like greater transparency on how their money is invested. This ISA season we are encouraging UK savers to consider both the financial and social impact of their money.”

“Savers can make a competitive return and invest their money in ways that are transparent and consistent with their values.”

One such ‘conscious consumer’ is self-employed mum Kate Duggan, 40, from Honiton, Devon who has savings invested in Charity Bank’s 33-Day Notice Ethical Cash ISA which currently pays 1.07% Gross*/ AER** and is invested directly in charities and projects that benefit people across the UK.

Kate Duggan

Charity Bank saver Kate Duggan

Charity Bank saver Kate said: “I have always been fairly ethically minded. I would say that having a family is a further driver – it makes me think about what kind of world I am leaving to my children, and therefore I tend to make choices that will benefit them in the long-term.

“We very much wanted to make sure the provider we took our ISA out with was ethical. We didn’t want our savings to be invested in tobacco and other similar industries but to be making a positive difference whilst we were waiting to buy a new family home. We did consider other ISA products that offered a higher rate of interest, however the gain was fairly negligible.

“Receiving the positive stories of the charitable projects Charity Bank has invested in feels like affirmation that we made the right decision.”

Charity Bank’s research reveals that the main reasons for buying and investing ethically are:

  • Being in line with personal values (42%)
  • Part of commitment to living responsibly (42%)
  • Don’t want to support unethical businesses (38%)
  • Want to support local organisations (38%)
  • Want to have a positive impact on others (35%)
  • Want to give something back to society (34%)

For more information on Charity Bank’s deposit or loan products visit our dedicated pages or call 01732 441944.

Charity Bank Ethical 33-Day Notice Cash ISA - Summary Box

What is the interest rate?

The interest rate is 1.07% gross* / AER**.

Interest is calculated daily and paid annually to your account on the last business day of December.

You can choose to have your interest paid to your Ethical 33-Day Notice Cash ISA account, another eligible Charity Bank savings account or your Nominated Account.

Can Charity Bank change the interest rate?

Yes. This is a managed rate account. The Terms for Personal savers explain how and why the interest rate can be changed.

What would be the estimated balance after 12 months based on a £1,000 deposit?

Based on an interest rate of 1.07% gross* / AER**,the balance on a £1,000 deposit after 12 months would be £1,010.70. This illustrative example assumes no withdrawals, no changes to the managed interest rate over the period and interest is paid and compounded annually. (The illustrative example does not take into account the individual circumstances of a customer).

What is the tax status?

Interest is paid tax-free, that is free from UK Income Tax and Capital Gains Tax and doesn't count towards your Personal Savings Allowance.

The value of tax benefits described depends on individual circumstances.

The tax treatment of ISAs could change in the future.

How do I open and manage my account?

- To open an account you must be aged 16 years or over and a UK resident and taxpayer.

- An ISA can only be held in the name of an individual: joint accounts are not allowed.

- Application to open a new ISA: You can open your account online or by post. You can manage your account by email or telephone.

- You may transfer existing ISAs from other ISA managers into this account. Please select 'APPLY ONLINE' if you would like to do this. You will need to print an Application Summary and Cash ISA Transfer Form at the end of the online process to sign and return to us. N.B.: If you already hold a current tax year Cash ISA with us, please contact us to discuss how to transfer in funds from another ISA manager.

- The minimum deposit required to open this account is £250.

- The maximum balance for this account is the 2017/18 ISA allowance of £20,000 or alternatively you may transfer in existing ISA balances up to a maximum of £500,000.

Can I withdraw money?

You can make unlimited withdrawals, but you must give 33 days' notice for each withdrawal or without notice where a deduction of interest equivalent to the notice period will apply. Your money can be returned to your nominated account, transferred to any other Personal Savings account you hold with us that accepts deposits or transferred to another ISA manager. Please be aware this is not a Flexible ISA.

Additional information

- If you change your mind within 14 days of opening your account we will cancel your account without penalty or notice.

-*Gross is the interest rate without tax deducted.

-**AER stands for Annual Equivalent Rate and illustrates the interest rate if it was paid and compounded once each year.