4 Ethical and Eco-Friendly Bank Accounts

Your bank account isn’t just a place to park your cash; it’s also fueling the projects and industries your bank invests in. Some are funding fossil fuels and industries that harm the planet, and others are using deposits to support clean energy, affordable housing and community projects.

Want to support banks that make a difference? Learn how to find ethical and eco-friendly banks, and compare top options.

What is an ethical bank?

An ethical bank, sometimes called a sustainable, civic or alternative bank, focuses on the social and environmental impact of its activities, not just profit.

They differ from traditional banks in that, instead of investing heavily in oil, gas or weapons manufacturing, ethical banks prioritize funding for renewable energy, affordable housing, community development and other socially beneficial projects.

In other words, when you deposit money in an ethical bank, your money is being put to work for causes beyond shareholder profits.

Some initiatives you’ll often see include:

• Cards made from recycled or biodegradable materials
• Tree planting or carbon-offset programs
• Community outreach through lending, housing projects or education programs
• Transparency reports showing where deposits are invested

What certifications should I look for?

Because “green” and “ethical” aren’t legally defined terms, it can be kind of tricky to separate genuine impact from marketing fluff.

So, if you want to work with an eco-friendly bank, look for third-party certifications and memberships on their website. For example:

• Global Alliance for Banking on Values (GABV). An international network of banks committed to social, cultural and environmental sustainability.
• Fossil Free Certified (via Bank.Green). Banks that pledge not to fund fossil fuels.
• Certified B Corporation. Businesses that meet rigorous standards for social and environmental performance.
• 1% for the Planet. A commitment to donate 1% of annual revenue to environmental nonprofits.

4 ethical and eco-friendly banking options

If you care about sustainability and social impact, it stands to reason that you’d want an ethical or eco-friendly bank that aligns with your values.

• For rewards and offsetting: GreenFi (formerly Aspiration)
• For savings accounts: Alliant Credit Union
• For community development: City First Bank
• For clean energy loans: Clean Energy Credit Union

1. For rewards and offsetting

GreenFi is a hybrid checking and savings account that lets you round up transactions to plant trees. It also allows you to earn up to 6% cash back, depending on your plan. That said, if you’re not a fan of online-only bank accounts, GreenFi may not be for you.

2. For savings accounts

Being owned and operated by its members, Bank.Green states that Alliant Credit Union is unlikely to be investing in fossil fuels, and is rated highly by that independent organization. Alliant is also the largest credit union in the state of Illinois, and is known for its stellar rates on savings products. The High-Rate Savings account offers a 3.01% APY with a balance of at least $100, and has no monthly fees.

3. For community development

Based in Washington, DC, City First focuses on underserved communities by financing affordable housing, small businesses and nonprofits. City First Bank is a Certified Community Development Financial Institution (CDFI) that targets at least 60% of its lending to low-to-moderate income communities, according to its site.

4. For clean energy loans

Clean Energy Credit Union is a federally insured credit union that exclusively finances renewable energy and energy-efficient projects. Members can access loans for solar panels, EVs and green home improvements.

What happened to Treecard?

Treecard used to offer wooden debit cards that plant trees as you spend cash on your everyday purchases, but that program has been discontinued for while. Treecard continued some of its features for a while after the card program shut down, including “walk-to-plant” and “spend-to-plant” initiatives, but as of April 2026, that is also now discontinued.

Are credit unions more ethical than banks?

Credit unions are member-owned, nonprofit organizations, rather than shareholder-driven corporations like banks. This structure allows them to focus more on local community reinvestment and member benefits.

Many people see credit unions as the “default” ethical option because:

• Profits are returned to members through better rates or lower fees
• They typically fund local businesses and community development
• They often offer more personalized customer service

That said, not every credit union is automatically eco-friendly or ethical since some may invest in fossil fuels or lack environmental initiatives. Check what projects a credit union supports if you’re thinking about joining, and remember that credit unions have membership requirements, such as living, working or worshiping in their service area.

Are eco-friendly bank accounts more expensive?

Not necessarily. Some ethical banks may charge monthly fees to fund sustainability initiatives, but many are on par with traditional accounts.

For example, Forbright Bank’s CDs and high-yield savings accounts are fee-free. Many of Clean Energy Credit Union’s personal accounts come with zero monthly maintenance fees as well.

Pros and cons of an ethical and eco-friendly bank

Banking ethically can be rewarding, but it isn’t always convenient. Here are some pros and cons so you know what to expect.

Bottom line

Eco-friendly banking is one way to make sure your money is building a better future and not just earning interest. However, “ethical bank” is not a legally defined term, and some providers may exaggerate their impact. So, look for certifications, memberships and transparency reports that can help you distinguish between true impact and greenwashing.

Not sold on any of the above options? Compare more banking products.

To make sure you get accurate and helpful information, this guide has been edited by Bethany Hickey as part of our fact-checking process.

Written by

Jamela Adam

Contributor

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Jamela Adam is a personal finance writer with over three years of experience. Her work has been published in major publications, including Yahoo Finance, Forbes Advisor, U.S. News, Business Insider, GOBankingRates, CNN Underscored, and Chime. Jamela previously worked as a content marketing specialist and helped devise content strategies for major brands in the financial services space. She is also a Certified Financial Education Instructor (CFEI). See full bio