Less providers of ethical savings, as demand grows
Monday 9 June 2008
As the Catholic Building Society announces merger talks with the Chelsea, where can their ethically-minded investors go now?
With the news this weekend that the Catholic Building Society is in discussions with the Chelsea about a merger, some may feel that yet another small, ethically-minded financial services provider is shortly going to disappear. As the last couple of years have seen the smaller - and some may argue more committed mutual - societies merged with the big players, choice is slowly being eroded for savers. Some of the Catholic's 4,000 members may be happy to receive a windfall payment but others may be looking for a new ethical home for their savings.
However, ethical savers can always turn to the Ecology Building Society, which is committed to providing accounts for savers with ethical concerns - and the Ecology's recent performance would strongly suggest that more and more savers do have a conscience about how and where their money is invested. The Society, which has seen record savings inflows over the last few months, uses its savers' investments to fund its green mortgages, which are only available for properties that have a positive environmental benefit. So not only do savers receive a good return on their investment, they know their savings are helping to build a more sustainable, ethical future.
The Ecology offers a range of savings accounts - including a tax-free Cash ISA, penalty-free instant access account and a 60 day notice account. The Earthwise Cash ISA is by far the Society's most successful account, bringing in the highest amount of deposits each month, followed closely by the Eco-60 notice account. In addition, the Society is currently offering its Earthsaver Bond Issue 3, which as well as providing a good return, also helps to support the Centre for Alternative Technology in Wales.
Ecology CEO, Paul Ellis said, "The recent troubles in the banking industry have made savers think about the stability of the financial institution they deal with and it is not surprising many have put they trust and savings in the security of mutual building societies. It is a real shame that yet another mutual may soon be disappearing, and even more so when it is one that takes an ethical stance, in a similar way to the Ecology".
