Those who invest money in banks rarely know what they are financing with it. But there are sustainable financial institutions that disclose exactly that.
Berlin (dpa) l banks work with their customers’ deposits. That means: you grant loans. Who gets a loan is at the discretion of the financial institution. For customers this means: With their deposits, they may indirectly support companies that they do not approve of. For example weapons manufacturers.
If you want to rule that out, you have to invest your money in sustainable banks. The magazine “Finanztest” (issue 3/2021) tested eleven national institutes that also offer overnight or fixed-term deposits. In terms of supply and security, the sustainable institutions do not differ from the other banks. However, the investment and business philosophy may be different.
None of the institutes tested granted loans to arms manufacturers or armaments companies. Gambling and pornography are also excluded. There are, however, differences between coal and nuclear power – not all institutes exclude loans here. This shows that customers should take a close look at whether the bank’s business policy corresponds to their own goals.
Wide range for investors
The range of sustainable financial institutions can keep up with those of the competition: from current accounts to fixed-term deposits or overnight deposits to securities accounts, everything is usually included. Plus point: The interest rate for the overdraft facility is at most 8 percent below the rates of many conventional banks and savings banks.
However, not every sustainable bank provides consumer credit. However, ecological construction projects or the purchase of electric cars are sometimes financed. With some sustainable financial institutions, you can also donate the income from your investments in a targeted manner.
–
