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Ben Gran is a freelance writer based in Des Moines, Iowa. He has written for regional banks, fintechs, and major financial services companies. Ben is a graduate of Rice University.
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Eric McWhinnie
Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.
Your choice of where to open a bank account can make a difference in the climate change fight. Green banks, also known as environmentally friendly banks, refuse to lend money to fossil fuel projects like oil and gas companies.
Let's look at why your bank can help -- or hurt -- the climate, and which eco-friendly banks might be the best choice for your checking account or savings account.
Many major banks use the money in checking or savings accounts to make loans to oil companies, coal mines, utility companies that burn coal, and other carbon-intensive industries that are emitting the most CO2 pollution into the atmosphere.
Instead of lending money to oil and gas projects that cause some of the biggest carbon emissions, eco-friendly banks prioritize lending money to solar panel installation, wind power, and other clean energy projects.
Forbright Bank Growth Savings
The Growth Savings account pays the highest APY of any savings account at Forbright Bank. It can be opened online and accessed via mobile app. With this account, you won't get a debit card or ATM access. But you get unlimited transfers and yields that are competitive with the best savings accounts.
Forbright Bank is a green bank that helps reduce greenhouse gas emissions by over 35,000 metric tons per year by issuing loans for renewable energy and energy efficiency projects. This bank is also Fossil-Free Certified, Green Business Certified, and is a signatory to the United Nations Principles for Responsible Banking.
Along with its positive impact on climate change and sustainability, Forbright Bank is currently offering some of the best APYs on savings accounts and 1-year CDs.
The Forbright Bank Bright Checking account can only be opened at a Forbright Bank branch, but it offers a competitive tiered APY system for customers with higher balances.
Aspiration Spend & Save
The Aspiration Spend & Save account is a unique hybrid account targeted at the environmentally conscious. It offers a lot of rare features that are sure to attract attention, but make sure you think you'll earn enough to offset the monthly fee if you sign up for the paid plan.
Aspiration is a green banking fintech company that works with a bank partner to offer a hybrid checking and savings account and other financial products.
With Aspiration, you can earn up to 3.00% APY on your savings, get up to 10% cash back rewards on your debit card when shopping at businesses that belong to the Conscience Coalition, and plant trees with the spare change from your everyday spending.
Aspiration customers have helped plant more than 28 million trees, removing more than 4.4 million tons of CO2.
Ponce Bank Simply Free Checking
The Ponce Simply Free Checking account is suitable for people who want a standard checking account with a free debit card, online and mobile banking, and a large surcharge-free ATM network. It doesn't offer many bells and whistles though, including no option for your balance to earn interest.
Founded in the Bronx, New York, Ponce Bank is a community development financial institution (CDFI) and designated minority depository institution (MDI) -- Ponce Bank is dedicated to providing banking services for communities that are often underserved and underbanked.
This community-focused bank is also an eco-friendly bank -- Ponce Bank does not fund fossil fuel projects, and it invests in programs to reduce the impact of climate change, especially for lower-income, underserved communities.
Ponce Bank checking accounts are a great choice if you want to avoid checking account fees. It also offers high APYs on some CDs and money market accounts if you open your Ponce Bank account through Raisin.
Amalgamated Bank has pledged not to lend money to fossil fuel companies, and was the first U.S. bank to publicly share its Net Zero Climate Targets. In fact, 32% of all loans issued by Amalgamated Bank are focused on climate change solutions, such as solar energy projects.
This bank also offers a Fossil Fuel Free Portfolio and other ESG investment products, so you can invest in companies that are dedicated to renewable energy and eliminating carbon emissions.
Atmos Financial is a fintech company focused on fighting climate change -- its bank accounts exclusively fund solar projects. The Atmos Cash-Back Checking account offers up to 5% cash back rewards when you spend at hundreds of sustainable brands, and the Atmos High-Yield Savings account pays a competitive APY when you make a monthly donation to a climate nonprofit.
Clean Energy Credit Union is an online-only credit union that specializes in loans for clean energy (like solar panels and geothermal heat pump systems), electric vehicles, and more. The Clean Energy Credit Union Rewards Checking account pays a competitive APY for balances up to $15,000.
Although this credit union's savings account APY is poor, its certificates (CDs) are much more competitive with the best CD rates.
Climate First Bank is a community bank based in Florida dedicated to funding clean energy and putting the climate first. This eco-friendly bank has helped finance over 43,000 kilowatts of solar energy, bringing renewable energy to over 1,870 homes.
Climate First Bank is currently offering a very competitive APY on your choice of a checking account, money market account, or 6-month CD (terms apply; minimum balance required). If you can qualify, this APY is competitive with the highest savings account interest rates.
Founded in 2007, Spring Bank is New York's first B Corp bank -- meaning it is dedicated to socially responsible business practices and using the power of business to make the world a better place. This eco-friendly bank is also a member of Bank.Green's Fossil Free Banking Alliance; Spring Bank has never provided financing to fossil fuel projects.
And Spring Bank is not just an environmentally friendly bank; it also provides high APYs on savings accounts and CDs.
There are a few good ways to find an eco-friendly bank -- but you don't have to take the bank's word for it.
Environmentally friendly banks tend to have a few major certifications and participate in green banking organizations to show that they are committed to fighting climate change and not investing in fossil fuels.
Here are a few certifications and alliance partnerships to look for in an eco-friendly bank:
Along with these partnerships and certifications, many green banks provide special eco-friendly banking products and investment offerings. These might include:
The fight against climate change is becoming more urgent with each new season of destructive storms and record-breaking temperatures. If humanity wants to avoid the worst-case scenarios of climate change, the way we spend our money (and where we keep our money) matters more than ever.
Choosing a green bank for your next checking account or savings account can make a big difference for your local community and for the planet. And eco-friendly banks might even give you better checking account rewards and higher savings account APYs.
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