Shilpa KarhikEthical Savers - Why It's Hard To Have It Both Ways
May 10th 2007 15:43
An interesting two-year fixed rate savings bond has just been introduced. But what makes this different to all the others is that the bond's funds will only be invested in renewable energy projects.
The Triodos Renewable Energy Bond
Minimum investment £2,500, maximum £10,000
Interest is 4.5% per annum
The term is fixed for 2 years
The money will be invested in small-scale renewable energy projects here in the UK
Offered by the Triodos Bank, a leading European ethical banks based in Holland but with a UK office
Contrast The Ethical Bond With a 5.9% Interest Rate
Britannia Building Society 1 Year Fixed Rate Bond
Pays interest at 5.9% gross
Minimum balance is £1,000
Monthly interest option also available at 5.65%
Summary
It's hard for investors to have it both ways, ie attract the best rate of return while investing ethically. In fact many would argue that the words 'money' and 'ethics' just don't mix. This point is proved with this Triodos bond which pays an interest rate of 1.4% below the best fixed bond on the market today. However, getting the best return for many people is often not the most important factor when it comes to investing so those with a green slant may well find this bond worthwhile.
But another way to invest in green causes is to give part of the money away. Simply invest in the higher yielding 5.9% bond and then donate say 1% to green causes while still earning a very respectable 4.9%.
The Triodos Renewable Energy Bond
Minimum investment £2,500, maximum £10,000
Interest is 4.5% per annum
The term is fixed for 2 years
The money will be invested in small-scale renewable energy projects here in the UK
Offered by the Triodos Bank, a leading European ethical banks based in Holland but with a UK office
Contrast The Ethical Bond With a 5.9% Interest Rate
Pays interest at 5.9% gross
Minimum balance is £1,000
Monthly interest option also available at 5.65%
Summary
It's hard for investors to have it both ways, ie attract the best rate of return while investing ethically. In fact many would argue that the words 'money' and 'ethics' just don't mix. This point is proved with this Triodos bond which pays an interest rate of 1.4% below the best fixed bond on the market today. However, getting the best return for many people is often not the most important factor when it comes to investing so those with a green slant may well find this bond worthwhile.
But another way to invest in green causes is to give part of the money away. Simply invest in the higher yielding 5.9% bond and then donate say 1% to green causes while still earning a very respectable 4.9%.
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