How to make sure your ISA does good in 2017

It’s almost the end of the tax year and I’m sure that many of you have seen the plethora of ads promoting a variety of different ISA products. With this much choice on offer how do you make the right decision and are you being provided with all the information you need to make the best choice for you?

Here at Ethex we think it’s really important that when you put your money into an ISA you should find out where your money then goes. A recent research study commissioned by Charity Bank concluded that 74% of people were unaware of what their savings were supporting. In contrast, 71% of people would like their bank to make it clearer where their money is invested. With around some £762 billion of UK savings sitting in cash, then if invested appropriately this could be a powerful force for good #Bankingforgood

Charity Bank’s research also revealed that 56% of people would like to be offered an ethical ISA as an option when choosing a savings account and that a further 61% of respondents would consider opening savings accounts that paid a fair rate of interest and lent money to charities, social enterprises and other good causes.

An ISA, or Individual Savings Account, is a tax-free wrapper around savings and investments, meaning you can receive interest without paying tax. There are three different types of ISA: cash; stocks and shares; and Innovative Finance ISAs. Individuals can invest in several different ISAs up to a maximum of £15,240 for the tax year 2016–17 and in 2017–18 this will be £20,000.

To find out more about the different types of ISAs and how they work visit Ethex’s Help and Guidance pages.

Not all banks are the same

Wherever money is saved and invested it makes a journey. This journey can result in money sometimes doing good and sometimes not. Leading ethical banks Triodos and Charity Bank are now providing customers with a choice. They enable individuals to align where they save their money with their values, helping hundreds of charities and social enterprises along the way and ultimately making the world a better place #Bankingforgood.

See the latest ethical ISA offerings from Triodos and Charity Bank below.

Check out Charity Bank’s new video about how they support hundreds of charities and social enterprise.

In contrast, a recent campaign by Greenpeace highlighted just how opaque the journey of money can be. Despite Europe’s largest bank HSBC having seemingly comprehensive sustainability policies in place they were still found to have been part of a banking syndicate that made loans of US$ 16.3 billion to six companies whose palm oil operations have destroyed vast areas of rainforest, peatland and orangutan habitat in Indonesia.

And it’s not just isolated to HSBC, BankTrack a leading NGO that tracks, campaigns and supports organisations focused on banks and the activities they finance, has also highlighted how some banks are also involved in human rights abuses, money laundering, arms financing and investment in coal plants and other forms of high carbon infrastructure.

Make your ISA do good

With 62% of people surveyed by Charity Bank wanting their savings to support charities, social enterprises and other good causes the time is right to choose or switch to an ISA where your money does good.

Here are all the latest ethical ISA products on the Ethex platform:

If you have any questions about Ethex’s ISAs or savings and investment products more broadly, then please get in touch.

https://www.ethex.org.uk/savings--investments_16.html

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You can browse, compare and invest in a range of products on Ethex platform from bank accounts and ISAs to equity investments and charity bonds that offer a social/environmental as well as a financial return. All you need to do is get started...

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