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If you're passionate about environmental justice or want to bank with a financial institution that closely aligns with your values, an environmentally friendly bank might be worth considering.
The best banks also have strong bank accounts with low fees. Below, you'll find our top picks for eco-friendly banks based on which accounts you'd like to open.
The Best Eco-friendly Banks and Credit Unions
Compare Environmentally Friendly Financial Institutions
Experts' Advice on Choosing the Best Bank
To learn more about what makes a good bank or credit union and how to choose the best fit, four experts weighed in:
Insider
We're focusing on what will make a bank most useful, including customer service, fees, rates, and more. Here's what they had to say about finding a bank. (Some text may be lightly edited for clarity.)
How can someone determine whether a bank is the right fit for them?
Tania Brown, certified financial planner at SaverLife:
"Obviously, you want to make sure it's FDIC insured. Also, your banking experience — do you like walking into a bank? Well, then you need someone local. Do you just not care if you ever see your bank? Then you're okay online. Do you write checks? Do you not write checks? So it's thinking through how your experience with it is going to be before you make that decision."
Sophia Acevedo, certified educator in personal finance, banking reporter, Personal Finance Insider:
"I would create a list of what I prioritize most in a bank account. For example, some banks have accounts that charge monthly service fees. I would look to see what the requirements are for waiving the monthly service fee and whether I think I could feasibly meet those requirements each month. If I'm searching for an interest-earning bank account I'll pay attention to interest rates. I would make sure the account pays a higher interest rate than the average bank account."
What should someone look for in a brick-and-mortar bank?
Tania Brown, CFP:
"How can that bank grow with you? If you are 25, single, or newly married, and all you need is a checking account, that's going to look very different 15 years from now when you may have had a couple of jobs, you may have an IRA roll over, or you may want a financial adviser."
Mykail James, CFEI:
"How accessible it is. So where are the branches? And if I am to go out of town or something, how accessible is my money to me?"
What should someone look for in an online bank?
Tania Brown, CFP:
"With an online bank, absolutely online customer service because you do not have the advantage of walking inside and talking to a human being. How often are you able to get them? What are their hours?"
Roger Ma, certified financial planner with lifelaidout® and author of "Work Your Money, Not Your Life":
"How onerous the transfer process is, transferring money in and transferring money out. Is it same day, next day? Is it pretty easy to sync a brick-and-mortar checking account to this particular high-yield savings account?"
Mykail James, CFEI:
"When it comes to online banks, you want to be a little bit more strict about what type of interest rates they're providing. That's the biggest thing, because online banks are supposed to have the higher interest rate because they don't have the overhead of the brick-and-mortar. You want to make sure that it's well above the national average. What type of securities do they provide? Do they have two-factor identification? If it's an online bank, they should definitely have — at the bare minimum — two-factor authentication in how easy it is to change your passwords and things like that, because you want to be a little more hypersensitive about the cyber security for a strictly online bank."
What should I look for in a bank to see if it is environmentally friendly?
Sophia Acevedo, CEPF:
"First, I would look at the bank's mission statement and policies. Several banks will specify that they do not lend to companies or projects involving fossil fuels. I would also look to see if a bank has any green certifications."
Methodology: How Did We Choose the Best Eco-Friendly Banks?
At Personal Finance Insider, our goal is to create useful content that helps you make good decisions about your money. We recognize every person has distinct preferences, so we provide ample options to help you find the most suitable financial product or account.
We research extensively to make sure you know the standout features and limitations of a financial institution.
First, we researched to find financial institutions with green initiatives and green certifications. We looked at each bank's mission statement, policies, and culture to see how the bank tackled sustainability and climate change. We also assessed the requirements that needed to be met to receive green certifications and designations.
Then, we reviewed each institution to find the most-well rounded banking options. We compared minimum opening deposits, monthly services, and interest rates (for savings accounts). We also took into consideration if a bank product had special features — like environmental impact scores or donation opportunities.
For our list, we chose institutions that had clearly outlined green initiatives and strong bank accounts with minimal bank fees. Most of our top picks are also available throughout the US.
Environmentally Friendly Banks: Frequently Asked Questions
What is an environmentally friendly bank?
Many big banks invest billions in fossil fuel projects and companies. However, environmentally friendly banks, also commonly referred to as sustainable banks or green banks, are financial institutions or online banking platforms with policies and initiatives involving sustainability and environmental action.
How do you identify an environmentally friendly bank?
Most green banks will partner with non-profit organizations focused on combatting climate change. Many will also seek a green certification or designation.
Which are the most eco-friendly banks?
Beneficial State Bank, Amalgamated Bank, and City First Bank have the most certifications and designations for their social and environmental impact. However, keep in mind that you may also want to look at the overall bank experience before choosing where to bank. You'll need to consider what you prioritize in your account — minimum opening deposits, bank fees, access to cash — before making your decision.
Which banks do not fund fossil fuels?
The following US institutions have received a Fossil Free Certification, which means that these financial institutions will not lend to fossil fuel companies or projects.
- Amalgamated Bank
- Atmos Financial
- Beneficial State Bank
- Clean Energy Credit Union
- Climate First Bank
- Self-Help Credit Union
- Virginia Community Capital
Best for a Checking Account
Amalgamated Bank (jump to Amalgamated Bank account details »)
Why it stands out: The is a solid interest-earning checking account with zero monthly service fees. It stands out from other checking accounts because Amalgamated Bank matches the equivalent of half the interest you earn on the account and lets you donate that amount to a charity that's partnered with the institution.
Green practices/policies: As a Fossil Free certified institution, Amalgamated Bank has pledged not to invest in fossil fuels projects. According to the bank's website, 24% of its lending is solely focused on climate protection and property-assessed clean energy financing.
Amalgamated Bank is also B Corp certified since 2017, which means that it has met the B Lab's standards for social and environmental performance, transparency, and accountability.
Certification(s): Certified B Corp, GA BV Member, Green America certified, Fossil Free certified
Look out for: While the doesn't charge monthly service fees, you'll want to be mindful of the bank account's other fees. The account has a $34 overdraft fee. If you withdraw money from an out-of-network ATM, Amalgamated Bank will also charge you $2.50 per transaction.
Your banking experience also may depend on where you live. Amalgamated Bank has branches in New York City and San Francisco, but if you don't live in these cities you'll have to be comfortable with an online-only banking experience.
Best for a High-Yield Savings Account
Atmos Financial (jump to Atmos Financial account details »)
Why it stands out: The is a great high-yield savings account because it doesn't have minimum balance requirements or monthly maintenance fees. You may also earn a competitive interest rate if you choose to make monthly donations of at least $1 to a non-profit organization that's partnered with Atmos Financial.
Green practices/policies: As a Fossil Free certified financial institution, Atmos Financial has pledged it will not invest in projects that are harmful to the environment, such as fossil fuel projects or fast fashion companies.
When you open the , Atmos calculates the carbon impact of your account balance, which you'll be able to see on the platform's mobile app.
Certification(s): 1% for the Planet, Fossil Free certified (Pending B Corp certification)
Look out for: Atmos Financial is an online-banking platform, so it doesn't have any physical branches. You also won't be able to open a joint bank account.
Best Eco-Friendly Credit Union
Clean Energy Credit Union (jump to Clean Energy Credit Union account details »)
Why it stands out: Clean Energy Credit Union has low minimum opening deposits and doesn't charge monthly service fees. While the pays a low interest rate, Clean Energy Credit Union has a high-yield checking account that might be ideal if you're searching for a solid interest rate.
Green practices/policies: As a Fossil Free certified financial institution, Clean Energy Credit Union has pledged it will not invest in fossil fuel projects.
Clean Energy Credit Union also offers a variety of loans that can be used for green energy projects. For example, you apply for a clean energy vehicle loan, green home improvement loan, or electric bike loan.
Certification(s): Fossil Free certified, Green America certified
Look out for: Credit unions require you to be a member to open a bank account. To be eligible for membership at Clean Energy Credit Union, you must meet one of the following requirements:
- Be an employee or volunteer at Clean Energy Credit Union, Our Climate, or 350 Colorado
- Join a non-profit organization or association from this list
- Have an immediate family member or household member who meets one of the requirements listed above
To join Clean Energy Credit Union, you have to open up a savings account with at least $5. If you would prefer to only open a checking account, you might consider banking with a different institution.
Your banking experience may also depend on where you live. Clean Energy Credit Union doesn't have any physical branches, but it is still part of the Co-op Shared Branch network. You'll have to use this search tool to see if there are any locations in your area.
Best Eco-Friendly Local Bank
Spring Bank (jump to Spring Bank account details »)
Why it stands out: Spring Bankhas low minimum opening deposits and monthly service fees. Even though it's a local bank, you'll have free access to Citibank ATMs and MoneyPass ATMs.
The also pays a high interest rate as long as you have at least $100 in your account.
Green practices/policies: According to the bank's website, Spring Bank offset over 192,000 kg of carbon dioxide equivalent in 2019.
Spring Bank is also B Corp certified since 2016, which means that it has met the B Lab's standards for social and environmental performance, transparency, and accountability.
Certification(s): Certified B Corp, CDFI
Look out for: Spring Bank has two branches in the New York City area. If you don't live near a branch, you may still open an account online, but you'll still need to live in New York.
Other Eco-friendly Banks That Didn't Make the Cut and Why
- : Aspiration is a fintech company that's a Certified B Corp and Green America certified. It may be a good option if you're searching for a cash management accoun. Our top picks offer higher interest rates or have more banking options, though.
- : Androscoggin Bank is a local financial in Maine that's B Corp certified. Most of its accounts have low minimum opening deposits, but also include monthly service fees unless you meet certain requirements.
- : Bank of the West is based mostly on the West Coast, and has partnered with 1% for the Planet to offer a checking account. Through the checking account, the brick-and-mortar bank donates 1% of its net revenue earned from the account to environmental non-profit organizations part of the 1% for the Planet network. The main downside to this account is that you'll need to meet certain requirements to waive a $10 monthly service fee. Read the full review of Bank of the West here.
- : Brattleboro Savings & Loan is B Corp certified and has branches in Vermont. Its checking account doesn't charge monthly service fees, but you'll need to meet specific requirements to waive monthly service fees on its savings account.
- : Beneficial State Bank is based on the West Coast and has numerous certifications. While its checking account doesn't charge monthly service fees, its savings account does. Our top picks don't charge monthly service fees on their accounts. Read the full review of Beneficial State Bank here.
- : City First Bank is a Black-owned bank with numerous certifications —it's recognized as an MDI, CDFI, Certified B Corp, and GA BV member — and it may be worth considering if you live in Los Angeles or Washington, DC, because it has branches in these cities. It didn't become one of our top picks because it charges monthly service fees on its checking and savings accounts. Read the full review of City First Bank here.
- : Clearwater Credit Union is a GA BV member and CDFI. It has branches in Montana, but anyone in the US who is over the age of 18 and a US citizen can become a member. Clearwater Credit Union might be a good option if you're looking for a free checking account, but its savings account has monthly service fees unless you qualify to waive the fee.
- : Climate First Bank has locations in Florida and is Fossil Free certified. When you open a Regeneration Checking Account, you'll donate $100 to Project Regeneration, a non-profit organization focused on climate justice. Most of our top picks have lower initial deposits or more appealing perks, though.
- : Lead Bank is a Missouri-based brick-and-mortar financial institution that is also a GA BV member. Its savings and checking accounts don't charge monthly service fees but may not have unique perks like our top picks.
- : Mascoma Bank is B Corp certified. It might be appealing if you're a resident in Vermont and New Hampshire who prioritizes a traditional banking experience, but its checking accounts have monthly service fees unless you qualify to waive them.
- : National Cooperative Bank has one branch in Ohio, and it's a GA BV member. It might be ideal if you're looking for an interest-earning checking account or money market account, but you'll need to meet specific minimum balance requirements to waive monthly service fees on accounts.
- : Piscataqua is a B Corp certified financial institution with one branch in New Hampshire. It wasn't chosen as one of our top picks because its checking account has minimum balance requirements.
- : Self-Help Credit Union is Fossil Free certified. It has branches in North Carolina, South Carolina, Florida, and Virginia, as well as a sister credit union named Self-Help Federal Credit Union with branches in California, Illinois, and Washington. To become a member of either credit union, you'll only need to donate $5 to the bank's non-profit the Center for Community Self-Help. It didn't become one of our top picks because the credit union's checking account fees.
- : Sunrise Bank is B Corp certified and a GA BV member. It has branches in Minnesota and South Dakota and might be ideal if you're a resident in one of these states searching for a solid free checking account. But its savings accounts have monthly service fees unless you meet specific requirements.
- : Virginia Community Capital has numerous certifications — it's recognized as a CDFI, Certified B Corp, and fossil-free financial institution. While it has solid free checking and savings accounts, it lacks distinguishing features.
- : Verity Credit Union is a GA BV member with branches in Washington. It solid rewards checking account options, but to join Verity Credit Union, you must live in the state of Washington.
- : Vermont State Employees Credit Union is a GA BV member. To become a member, you'll need to live or work in the state of Vermont join the Northeast Sustainable Energy Association. While the bank has solid free checking and savings accounts, it lacks standout features.
Are These Banks Trustworthy?
We include ratings from the Better Business Bureau to evaluate how financial institutions address customer issues and handle transparency. Clean Energy Credit Union and Spring Bank haven't been reviewed by the BBB, yet.
Keep in mind that a great BBB rating doesn't necessarily mean you'll have a smooth relationship with a bank. Reach out to current customers or read online customer reviews to get a well-rounded perspective of a bank.
| Financial Institution | BBB rating |
| Amalgamated Bank | A+ |
| Atmos Financial | B |
Atmos Financial's partner bank, Evolve Bank & Trust, has a B rating because government action has been taken against the business and its received 80 customer complaints on the BBB website.
In 2022, the Justice Department required the bank to pay $1.3 million in a settlement that claimed Evolve Bank had discriminatory lending take place from 2014 to 2019.
Overview of Certifications
Below, is an overview of all the certifications and designations mentioned in our guide:
- B Corp Certification: B Lab is a global non-profit network that issues a B Corp Certification to companies that fulfill high standards of social and environmental performance, accountability, and transparency.
- Community development financial institution (CDFI): To become a CDFI, a financial institution must complete a certification process through the US Department of Treasury's Community Development Financial Institutions Fund. One of the primary requirements to become a CDFI is that a financial institution must have banking services and lending opportunities in predominantly low-income and underserved communities.
- Green America Certification: Green America is a non-profit organization dedicated to environmental justice. The organization certifies businesses that advocate for social change and meet their Green Business Standards.
- Global Banking on Values (GA BV): GA BV is made up of an international network of mission-driven banks focused on social impact and environmental sustainability. Banks are evaluated to see if they meet certain standards to become a member.
- Fossil Free Certification: To receive a Fossil Free Certification by the volunteer organization Bank. Green, financial institutions must commit to financing zero fossil fuel companies and projects now and in the future.
- Minority depository institution (MDI): An MDI is a financial institution recognized under the FDIC's Minority Depository Institution Program or the NCUA's MDI Preservation Program. To become an MDI, banks or credit unions must be primarily owned or led by Black Americans, Native Americans, Hispanic Americans, or Asian Americans. Financial institutions may also be required to serve these respective groups in their communities.
- 1% for the Planet: Businesses that join 1% of the Planet have pledged to turn over 1% of annual gross sales to non-profit organizations listed on the global network's website.
from All Content from Business Insider https://www.businessinsider.com/personal-finance/best-environmentally-friendly-banks
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