Which are the best ethical ISA providers?

05 April 2022

Question by Amanda

I'm looking for the best ethical ISA. Can you please make any recommendations?


Answered by Boring Money

Hi Amanda

Are you asking about a Cash ISA or Stocks and Shares ISA?

If it is a Cash ISA, where you get a set interest rate, then someone like Triodos Bank or Ecology Building Society might be a good idea to look at. They are consistently voted the most Ethical Bank and Building Society respectively in various polls and awards. They are likely to be best from the perspective of their positive impact and ethics, but you will also need to compare interest rates and how long you need to give up access to the money to compare the best interest rates.

If it is a Stocks and Shares ISA you're looking at, there is a bit more to consider as you will need to choose an investment platform and a fund or portfolio of funds. These types of ISAs don't offer a set interest rate and instead the returns are based on the performance of the underlying investment which can vary year to year.

The investment platform can be someone such as Hargreaves Lansdown or AJ Bell, for example. Some of these are more ethical than others in their business practices and you can find out more about these in the latest Ethical Consumer magazine here: https://www.ethicalconsumer.org/money-finance/shopping-guide/ethical-stocks-shares-isas

Whilst the investment platform's ethics are worth bearing in mind, the main thing you really need to be concerned instead with is the underlying investment fund or portfolio of funds you put your money into. These are where your money has the most impact and can have a positive, neutral or negative impact on the world, as well as trying to grow your money.

If investing in this way, you need to consider a couple of key things:


1) how much risk you are prepared to take with your money
2) what ethical means to you and what you would and wouldn't want your money being put into

Boring Money is going to be providing a lot more information on ethical funds that you can invest in within ISAs very soon, so keep an eye out for this.

Unfortunately I can't make specific recommendations now without knowing your circumstances and what you need, however if you want any further help I'd be happy to have a chat

Jamie

Answered by

Boring Money