Banking? Did you say ethical banking??

Sites:
www.smile.co.uk
www.thecooperativebank.co.uk

After a year of absolutely...what's the word...shit service from Lloyds TSB I decided to look for another bank. I went to an online bank called SMILE because my room mate said they have great service and give you a 500 pound overdraft for free. I discovered some really exciting stuff once I got on their website though!

They have an unbelievable ethical policy. This means when investing they won't invest in:
1. Companies or governments that fail to uphold human rights as well as companies with links to oppressive regimes.
2. Are involved in the arms trade
3. Use unfair trade practices
4. Use and develop genetically modified goods
5. Have the extraction of fossil fuels as their core business (read: oil companies).
6. Harm animals.

MORE IMPORTANTLY THOUGH THIS MEANS THEY INVEST IN:

1. Companies that support human rights and governments.
2. Use fair trade practices.
3. Provide renewable energy resources and are involved in recycling and waste reduction.
4. Use natural unmodified goods.
5. Find ways to test products without harming animals.

Smile is part of The Co-operative Bank so I went and checked out their website. Turns out their mortgage holders contributed 250,000 pounds to combat climate change.

So this company fits perfectly into the mandate of this blog. Simply by switching your mortgage to another company you can combat climate change. You can take money away from harmful companies and governments and support positive global impact by simply banking with another bank.

Now I know what you're thinking: "Surely the rates and service are terrible. I'll be paying more for the account, paying higher interest, and getting lower interest on my money. Fortunately the rates of interest they pay are higher than many banks, the fees are lower, and the service is better.

Smile boasts that 90% of their customers would recommend the bank to their friends.

Addendum

Excerpt from an article from The Ethical Investor

Ethics benefit bank
Ethics continue to be an important
influence on the profits enjoyed by The
Co-operative Bank. Over a third of the
bank’s £132 million profits in 2004 were
directly attributable to its ethical and
sustainability policies. The equivalent
figure in the previous year was 29%.
The bank arrives at these figures each
year by asking its customers what
value they attach to its ethical policies.
This year’s increase is largely the result
of ‘an increasing number of loan and
savings account customers joining and
staying for ethical reasons’.
Disclosure law comes into force