Plant your savings in greener pastures

Choices for ethical investors about where to fulfil their everyday banking needs are straightforward: ethical advisers point to building societies, particularly those which have declared an intent not to convert to "plc" status, rather than banks.

One notable exception is the Co-operative Bank, which is unique among high street banks in being owned by a co-operative. Unlike most high street banks, it has a well-publicised stance on environmentally friendly and non-exploitative investment.

The Co-op bank offers current accounts, savings accounts and a large range of credit cards - including affinity cards which make a £5 donation on successful application to the linked charitable causes, plus 25p for every £100 spent.

The Co-op's Simon Williams says: "When we ask customers why they joined the bank, a third state our ethical policy as the main reason."

It will not deal with companies involved in the exploitation of workers, environmental damage, arms manufacture, animal testing of cosmetic or household products and factory farming methods, nor those without an ethical and environmental policy in action.

This year, the bank is polling its 2m customers for their views on ethical issues in order to refine its policies.

Its current account compares well with competitors. Save Direct, a pure savings account, pays tiered rates starting at 2.25% on the minimum opening balance of £250. If you are happy running your Isa online, you'll get an attractive rate, currently 6.5%, with the mini cash Isa from Smile, the internet bank owned by the Co-op.

Brigid Benson, of Manchester-based ethical financial advisers, GAEIA, says: "[The Co-op's] interest rates aren't always the most competitive but the combination of ethical policy plus convenience is very attractive. But for someone who wants to bank at a local branch and who does not have a Co-op branch nearby, we'd recommend Nationwide as the best 'benign' alternative."

For ethical investors who are happy to stray away from the mainstream, Bristol-based Triodos Bank - which lends only to enterprises with social and environmental objectives - offers a range of savings options.

"Triodos is even more pro-active and innovative on socially responsible invest ment than the Co-op and its ethical policy is very strict. We think it's brilliant for cash Isas," Ms Benson says.

Its 33-day notice mini cash Isa pays 5.5% on £10 plus. Among its other savings accounts, all of which are run by post and phone, is the social investor account. With a minimum opening deposit of £500, it allows customers a choice of notice period. On £1,000, for example, its pays 3.94% with 33 days notice.

Its range of Partnership accounts, which allow you to target your savings at particular projects or sectors, also offer a choice of notice periods from one to 90 days. These include the Earth Saver Account, developed in partnership with Friends of the Earth to provide finance for green energy projects and the Organic Saver Account, developed with the Soil Association, to provide finance for high quality organic farms and businesses.

The West-Yorkshire-based Ecology building society, uses its savers' money to provide mortgages for "green" property projects. Its most popular account, Eco-Instant, is a tiered-rate passbook account paying 3.4% on £500, 3.65% on £5,000 and 3.9% on £10,000.