Triodos Bank prioritises people and planet over profit maximisation and has a focused commitment to sustainable banking practices. This means we are different to a lot of other banks. But we still care about providing high-quality products and services and know we must offer fair and competitive rates.
Key to this is offering the best value to savers we can while ensuring our long-term stability and ensuring we help create the impact that our customers want in the real economy. At Triodos this is about finding the right balance between the value we give to our borrowers – the sustainable organisations we support – and what we can give back to our customers who save with us. You can see all the customers we support on our Know Where Your Money Goes map.
Our customers want their savings to be used in a sustainable and transparent way. That’s why we lend money to support the ethical projects that we know are important to them, such as renewable energy initiatives, community development, or social enterprises. Many of these organisations are operating in very challenging times. A balanced approach to setting rates on both sides ensures that we can continue to serve our customers effectively in the long run.
Providing easy to understand products
Other banks may offer a variety of high-rate deals for savings products. These might be time-limited or dependent on the customer fulfilling certain conditions, like transferring a certain amount in to the account each month. These interest rates might be higher at first, but often drop after an initial ‘bonus’ period and can lead to lower rates of return in the long run.
Rather than having a myriad of time-limited offers or products with complex conditions, we focus on providing an everyday, good value range of savings products that are simple and easy to understand. When our rates go up they increase on all our products not just some, so we don’t leave customers languishing on very low rates. And new customers do not get a better rate than an existing customer on the same product.
The interest rate set by the Bank of England (the base rate) is key in determining the interest rates paid by UK banks. Our savings rates are not directly linked to the Bank of England base rate and it is just one of several factors we must take into consideration when deciding what they should be. For example, the proportion of our lending that is fixed and doesn’t move with the base rate, and the overall balance between savings and loans are just some of the factors that then affect how much interest we pay savers. However, we will always pass on as much of the base rate change as we can. We have increased our interest rates in response to the 13 base rate changes that have taken place since 2021.
Why you probably won’t see Triodos at the top of best buy tables
Best buy tables on mainstream comparison websites often compare savings and other banking products on interest rates and terms only, but don’t account for sustainability or ethical criteria. It is concerning that some high interest rates may be paid for by the financing of new fossil fuel projects, deforestation, arms or tobacco. In our opinion, these saving products are undermining the very future that consumers are saving for.
By striking a balance between the rates paid to savers and chagred to borrowers, we can create a banking environment that promotes stability, fosters positive change, and contributes to a better future for all.
If you are a Triodos savings customer then thank you for actively choosing us, not only for an interest rate but to align your money with your values. You can be assured our continued commitment is to deliver fair and transparent rates and fees, and positive impact with your money.