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Triodos Bank launches Fixed Rate ISA
New account completes ethical ISA range
- Ethical Fixed Rate ISA launched paying 2.1% AER over two years and 2.3% AER* over three years*
- Savers urged to take a small step and make their cash ISA savings work harder to help people, society, and the environment - just a small proportion of last year's £38bn** cash ISA subscriptions could make a real difference
Triodos Bank has added a range of fixed rate ISAs to its ethical ISA options as a response to ever-increasing customer demand for tax efficient ethically-driven savings. Paying 2.1% AER* over two years and 2.3%AER* over three years, the Triodos Bank fixed rate ISAs are available today and can be opened with as little as £1.
Research*** from Triodos Bank proves that more and more people are already taking small steps to live their lives more sustainably and it wants to encourage people to think about the positive social and environmental impacts they could have if they added saving ethically to this list of small but powerful actions.
The research shows that, over the past year, 39% of people have increased their recycling, 16% have started shopping more locally, 15% are using their car less, 11% have increased their charitable donations and 10% have started buying more organic or fairtrade food.
However, despite ongoing scandals at the more mainstream banks, 42%**** of people have no idea what their bank does with their money and just 6%*** have taken the relatively simple yet impactful step of having a savings or current account with an ethical bank.
Huw Davies, Head of Personal Banking at Triodos Bank, said: "People are beginning to realise that what they do each day in their lives can make a difference to the world around them, from where they buy their food, to where they deposit their money. More and more savers are beginning to question their bank's ethics and how money is used when on deposit and we hope more people start to recognise that small acts can bring big change, including when it comes to finance.
Huw added: 'For too long mainstream banks have sat back and been happy running purely transactional services for their customers, without encouraging their customers to think about or engage with the money deposited. There has never been a better time for people to act on their concerns about their bank's ethics and start feeling good about saving with a bank with an ethical approach.
"At Triodos Bank, our savers will always know exactly how we are using their money, and that it is only financing organisations delivering a positive environmental, social or cultural impact. Saving in a Triodos Bank ISA not only means you get a good financial return, but also peace of mind that the money you are saving is making a positive difference to people, society, and environment."
For example, if people invested their full 2012-2013 cash ISA allowance of £5,640 into an ISA with Triodos Bank, their money would help finance Triodos' £15,726,397 funding of the education sector meaning for every £5,640 invested seven individuals are being supported through education.***** For example, Triodos Bank finances the Premises Music Education programme charity, a range of courses at a pioneering London music recording studio offering musicians of all abilities the chance to develop their skills, from a women's music technology workshop to apprenticeships in studio management.
Customers can see exactly how their money is being used on Triodos' website, www.knowwhereyourmoneygoes.co.uk. Savers can see the projects their deposits are funding, such as the solar PV installation at Glastonbury's Worthy Farm, Hugh Fearnley-Whittingstall's River Cottage, green power company Ecotricity and more than 1,500 other sustainable enterprises. Triodos Bank is the UK's only commercial bank to publish this information for all its customers.
Triodos Bank's range of ethical ISAs now includes:
- The two and three year fixed rate ISAs
- 90 Day notice Online Cash ISA currently paying 2.15% tax-free (2.16% AER*) including a 12 month introductory bonus
- Online Cash ISA currently paying 2.00% tax-free (2.01% AER*) including a 12 month introductory bonus
- Ethical Junior Cash ISAs
*Rates correct as of 14 February 2012. Annual Equivalent Rate (AER) illustrates what the interest rate would be if interest was paid and compounded once each year. Tax-free is the contractual rate of interest payable where the interest is exempt from income tax. The favourable tax treatment for ISAs could change. Interest rate is calculated daily and paid six monthly. Except for the Fixed Rate ISA where interest is paid annually and at maturity.Interest rate is variable.
Notes to editors
* Withdrawals are not allowed. Early closure or full transfer out permitted
subject to a charge equivalent to: 2 year term - 180 days interest and 3 year term - 270 days interest. The charge will be taken from the account balance, so you may get back less than originally deposited.
**£5,234,000,000 cash ISAs April 2012 according to TISA / HMRC http://www.tisa.uk.com/statistics/44_201204B.pdf
***2015 people were interviewed online on behalf of Triodos Bank by Opinium Research between 29 and 31 January 2013. Research conducted by Opinium Research among 2015 UK adults (aged 18+) between 29th and 31st January 2013. Weighted to a nationally representative criteria.
****Research conducted by Opinium Research among 2012 UK adults (aged 18+) between 25th and 28th July 2012. Weighted to a nationally representative criteria.
*****£15,726,397 = total value of Triodos Bank finance to education sector at an average £780 per individual (20,158 individuals currently reached through Triodos Bank funding to the sector). £5,640 2012-2013 cash ISA allowance divided by £780 average cost per individual = seven individuals supported.
For more information, comment or a case study, please contact:
Lisa Stanley, firstname.lastname@example.org 0117 980 9721 / 07983 002013
Will Ferguson, William.email@example.com 0117 980 9770 / 07899 965640
Faye Holst, firstname.lastname@example.org 0117 980 9584 / 0755 778 5167
About Triodos Bank
Triodos Bank only finances enterprises which create social, environmental or cultural added value. Key sectors include organic food and farming, renewable energy, social housing, and fair trade. Transparency is a core value and Triodos publishes details of every business it lends to. A range of personal savings accounts is offered, and full banking services are available for businesses and charities. Triodos Bank is an independent bank founded in the Netherlands in 1980. Its principles and independence are protected through a special shareholding trust. The UK office opened in 1995 and is based in Bristol.