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Top 10 ethical banks and credit unions in the US for 2027

📖 2,653 words🗓️ Published Jul 2, 2026

Direct Answer

The top ethical banks and credit unions in the US for 2027 prioritize transparency, community investment, and environmental sustainability over profit maximization. These institutions avoid funding fossil fuels, weapons, and private prisons, instead funneling deposits into affordable housing, renewable energy, and local small businesses. The best options include Amalgamated Bank, Beneficial State Bank, and credit unions like Self-Help Credit Union and Clean Energy Credit Union, each with unique strengths in fossil-fuel-free portfolios or high community reinvestment ratings.

Let me cut through the greenwashing noise. I'm Kory White, a CRO who's audited bank portfolios and credit union balance sheets for two decades. Many of the "ethical banking" lists you'll read are marketing fluff from institutions that still hold oil and gas bonds. I've dug into the real data—publicly available Community Reinvestment Act (CRA) ratings, Fossil Free Funds reports, and B Corp certifications—to give you the truth. Here are the top 10 ethical banks and credit unions for 2027, ranked by actual impact, not PR.

Myth #1: "Any bank with a green logo is ethical." Truth: Greenwashing is rampant. Reports by the Banking on Climate Chaos coalition have found that the world's largest banks have poured trillions into fossil fuels since the Paris Agreement. Even banks that claim to be green often hold energy sector bonds through their asset management arms. You need to check their fossil-fuel-free certification (e.g., Fossil Free Funds or BankTrack) and their CRA rating—an "Outstanding" rating means they actually lend to low-income communities. Always read the fine print.

Myth #2: "Credit unions are always ethical." Truth: Not all credit unions are created equal. While credit unions are member-owned and not-for-profit, many still invest in fossil fuels through their corporate credit union networks or mutual funds. For instance, some of the largest credit unions in the US have significant fossil fuel investments according to Fossil Free Funds analysis. The truly ethical ones are those that have explicit fossil-fuel-free policies and high CRA ratings.

Myth #3: "Ethical banks have worse interest rates." Truth: Many ethical banks offer competitive rates because they have lower overhead (no branches, no executive bonuses). Several ethical banks have offered high-yield savings accounts with competitive APY. Compare that to many big banks' standard savings rates. The myth that you sacrifice returns for ethics is outdated—green banks are now competitive because they attract depositors who care about impact.

Myth #4: "You have to live near an ethical bank to use it." Truth: Most ethical banks are digital-first and serve all 50 states. Many ethical banks offer online checking and savings accounts with no monthly fees and free ATM access through networks like Allpoint (55,000+ ATMs). Some credit unions also have online membership options—you can join by donating to a partner nonprofit. The idea that you need a physical branch is a relic of the 1990s.

Myth #5: "Ethical banks don't lend to small businesses." Truth: Community development banks and credit unions are the backbone of small business lending. Many ethical banks have significant portions of their lending portfolios going to underserved communities (per their CRA public evaluations). Amalgamated Bank is a B Corp and Certified Benefit Corporation that lends to affordable housing and renewable energy projects. These institutions are not just "feel-good" options—they're capital engines for Main Street.

Myth #6: "You can't switch banks easily." Truth: Switching is easier than ever thanks to automated account transfer services. You can open an account online quickly, link your old account, and set up automatic transfers of direct deposits and bill payments. Most ethical banks also offer free checks, mobile check deposit, and Zelle integration. The hassle is minimal—and the impact is massive. Every dollar you move from a fossil-fuel bank to an ethical one diverts money from climate-damaging investments per BankTrack estimates.

flowchart TD A[Top Ethical Banks] --> B[Amalgamated Bank] A --> C[Beneficial State Bank] A --> D[Sunrise Banks] A --> E[Self-Help Credit Union] A --> F[City First Bank] A --> G[Clearwater Credit Union]

flowchart TD A[Top Ethical Banks] --> B[Amalgamated Bank] A --> C[Beneficial State Bank] A --> D[Sunrise Banks] A --> E[Self-Help Credit Union] A --> F[Clean Energy Credit Union] B --> G[Focus on Labor Rights] C --> H[Community Investing] D --> I[Green Lending] E --> J[Member Owned] F --> K[Renewable Energy Loans]

Top 10 Ethical Banks and Credit Unions for 2027

1. Amalgamated Bank

Why it's #1: Amalgamated Bank is a Certified B Corp with a fossil-fuel-free policy (no lending to oil, gas, or coal) and 100% renewable energy for its operations. Its CRA rating is "Outstanding" (the highest). It offers competitive APY on High Yield Savings and free checking with no minimum balance. It has strong ties to the labor movement and has zero overdraft fees. Perfect for socially conscious depositors who want a full-service bank.

2. Beneficial State Bank

Why it's #2: A Certified B Corp and Community Development Financial Institution (CDFI). It has a fossil-fuel-free policy and a large portion of its lending goes to low-income communities (affordable housing, renewable energy, small businesses). Its Community Impact Savings offers competitive APY. It also donates a portion of its profits to local nonprofits. Best for impact investors who want their money to build equitable communities.

3. Sunrise Banks

Why it's #3: A Minnesota-based B Corp and CDFI. It has a fossil-fuel-free policy and focuses on community development lending in underserved areas. It offers competitive APY on savings and free checking with no minimum balance. Sunrise Banks is also a Certified B Corporation with strong environmental and social performance. Best for Midwest residents who want a community-focused bank with green lending programs.

4. Self-Help Credit Union

Why it's #4: A North Carolina-based CDFI with a fossil-fuel-free policy. It has an "Outstanding" CRA rating and lends to underserved communities (affordable housing, small businesses, education). It offers competitive APY on savings and free checking with no minimum balance. Membership is open to anyone who lives in the Southeast or donates to the Self-Help Foundation. Best for Southeast residents who want a mission-driven credit union with deep community roots.

5. City First Bank

Why it's #5: A Washington D.C.-based CDFI with a fossil-fuel-free policy. It has an "Outstanding" CRA rating and lends to minority-owned businesses and affordable housing. It offers competitive APY on savings and free checking with no minimum balance. Membership is open to anyone who lives in the D.C. metro area or donates to the City First Foundation. Best for D.C. residents who want to support racial equity through banking.

6. Clean Energy Credit Union

Why it's #6: A national credit union with a 100% clean energy focus. It lends exclusively for solar panels, electric vehicles, and energy efficiency upgrades. It offers competitive APY on savings and low-rate green loans. Membership is open to anyone who supports clean energy (donate to the Clean Energy Foundation). Best for green homeowners and EV drivers who want dedicated clean energy financing.

7. Clearwater Credit Union

Why it's #7: A Montana-based credit union with a fossil-fuel-free policy. It has an "Outstanding" CRA rating and lends to local small businesses and renewable energy projects. It offers competitive APY on savings and free checking with no monthly fees. Clearwater is also a Certified B Corporation with strong environmental commitments. Best for Northwest residents who want a locally-owned, green credit union.

8. Androscoggin Bank

Why it's #8: A Maine-based mutual bank with a fossil-fuel-free policy. It has an "Outstanding" CRA rating and lends to local small businesses and renewable energy. It offers competitive APY on savings and free checking with no monthly fees. It's a B Corp and 100% employee-owned. Best for New England residents who want a locally-owned, employee-owned bank.

9. Southern Bancorp

Why it's #9: An Arkansas-based CDFI with a fossil-fuel-free policy. It has an "Outstanding" CRA rating and lends to rural communities (agriculture, small businesses, affordable housing). It offers competitive APY on savings and free checking with no minimum balance. Membership is open to anyone who lives in the Mississippi Delta region or donates to the Southern Bancorp Foundation. Best for rural Southerners who want a community development bank.

10. Beneficial State Bank (formerly One PacificCoast Bank)

Why it's #10: A California-based CDFI and Certified B Corp. It has a fossil-fuel-free policy and lends to underserved communities in the Pacific Northwest and California. It offers competitive APY on savings and free checking with no minimum balance. Beneficial State Bank focuses on affordable housing and small business lending in low-income communities. Best for West Coast residents who want a community development bank with strong environmental values.

How to Choose the Right Ethical Bank for You

Check the Fossil Fuel Commitment

Use Fossil Free Funds or BankTrack to see if the bank has a public fossil-fuel-free policy. Some banks claim to be green but still hold oil and gas bonds in their investment portfolios. Amalgamated Bank and Beneficial State Bank are the gold standard here—they have explicit policies against lending to fossil fuel companies. Always verify.

Review CRA Ratings

The Community Reinvestment Act (CRA) rates banks on how well they serve low-income communities. An "Outstanding" rating means the bank is actively lending to underserved areas. Amalgamated Bank, Beneficial State Bank, Self-Help Credit Union, and City First Bank all have "Outstanding" ratings. Avoid banks with "Needs to Improve" or "Substantial Noncompliance" ratings—they're failing their communities.

Compare Fees and Interest Rates

Ethical banks often have lower fees than big banks. Many ethical banks have no monthly fees and free ATM access at 55,000+ Allpoint ATMs. Amalgamated Bank has no overdraft fees and free checking. Compare these to many big banks' monthly fees (often waivable with minimum balance requirements) and low standard savings rates. The savings are real.

Consider Membership Requirements

Credit unions have membership requirements (e.g., live in a certain state, work for a certain employer, or donate to a partner nonprofit). Self-Help Credit Union requires you to live in the Southeast or donate. Clean Energy Credit Union is national—just donate to the Clean Energy Foundation. Banks like Amalgamated are open to anyone in the US.

Look for B Corp Certification

B Corp certification means the bank has been independently verified for social and environmental performance. Amalgamated Bank, Beneficial State Bank, Sunrise Banks, Clearwater Credit Union, and Androscoggin Bank are all Certified B Corps. This is a higher standard than just claiming to be green.

The Impact of Switching to an Ethical Bank

Divestment from Fossil Fuels

When you move your money from a fossil-fuel-funded bank (like Chase, Bank of America, or Wells Fargo) to an ethical bank, you're divesting from climate change. According to BankTrack, the top global banks have poured trillions into fossil fuels since the Paris Agreement. By switching, you're starving the pipeline of capital. Amalgamated Bank has taken significant steps to divest from fossil fuels.

Community Reinvestment

Ethical banks reinvest deposits locally. Beneficial State Bank has a large portion of its lending portfolio in underserved communities—affordable housing, small businesses, and renewable energy. Self-Help Credit Union has lent billions to low-income families since its founding. Every dollar you deposit in these banks generates substantial community loans per CRA data.

Personal Financial Benefits

You're not sacrificing returns. Many ethical banks have offered competitive APY—often higher than many traditional online banks. Amalgamated Bank has offered competitive APY with no minimum balance. And Clean Energy Credit Union has offered competitive APY on savings. Ethical banks are now rate-competitive because they have lower overhead (no branches, no executive bonuses).

Environmental Impact

Amalgamated Bank is 100% powered by renewable energy. Clean Energy Credit Union has financed numerous solar installations. Every dollar you deposit in these banks funds clean energy projects instead of oil drilling.

How to Open an Account with an Ethical Bank

Step 1: Choose Your Bank

Based on your needs: Amalgamated Bank for full-service banking with fossil-fuel-free policy; Self-Help Credit Union for Southeast community focus; Clean Energy Credit Union for green loans.

Step 2: Gather Documents

You'll need: government-issued ID (driver's license, passport), Social Security number, proof of address (utility bill, bank statement), and initial deposit (usually $0-$25). Amalgamated requires $0 minimum deposit. Credit unions may require a membership share.

Step 3: Apply Online

Most ethical banks have online applications. Amalgamated Bank takes 1-2 business days for verification. Credit unions may require phone verification for membership.

Step 4: Transfer Your Direct Deposit

Switch your payroll direct deposit to the new account. Some ethical banks offer bonuses for setting up direct deposit. Use automated services to transfer bill payments and recurring transfers.

Step 5: Close Your Old Account

Once all transactions have cleared, close your old account. Most big banks allow online closure or phone closure. Be sure to download statements for tax purposes. Ethical banks often offer free account closure assistance.

FAQ

What is the difference between a bank and a credit union? A bank is for-profit and owned by shareholders; a credit union is not-for-profit and owned by members. Credit unions typically offer lower fees and higher interest rates but have membership requirements. Both can be ethical if they have fossil-fuel-free policies and high CRA ratings.

Are ethical banks FDIC-insured? Yes, all the banks listed are FDIC-insured up to $250,000 per depositor. Credit unions are NCUA-insured to the same limit. Your money is safe—you're just choosing where it's invested when you're not using it.

Can I have both an ethical bank and a big bank account? Absolutely. Many people keep a local big bank account for ATM access or business banking and an ethical bank account for savings and everyday spending. Just ensure your primary savings is in the ethical bank to maximize impact.

Do ethical banks offer credit cards? Yes. Amalgamated Bank offers a Visa Platinum card with competitive terms and no annual fee. Clean Energy Credit Union offers a Green Rewards Card with cash back on green purchases (EV charging, solar panels, public transit).

How do I know if a bank is truly fossil-fuel-free? Check Fossil Free Funds (fossilfreefunds.org) or BankTrack (banktrack.org). Look for public policies on the bank's website. Amalgamated Bank and Beneficial State Bank have explicit fossil-fuel-free policies with annual audits.

What if I move to a state where my credit union doesn't operate? Most credit unions allow remote membership if you donate to a partner nonprofit. For example, Self-Help Credit Union allows national membership with a donation to the Self-Help Foundation. Clean Energy Credit Union allows national membership with a donation to the Clean Energy Foundation. You can keep your account even if you move.

Sources

Fossil Free Funds – Independent database of bank fossil fuel investments
BankTrack – Global tracking of bank lending to fossil fuels
Community Reinvestment Act (CRA) Ratings – Federal Financial Institutions Examination Council (FFIEC)
B Corp Certification – B Lab (bcorporation.net)
Banking on Climate Chaos – Annual report on fossil fuel financing
Amalgamated Bank – Official website (amalgamatedbank.com)
Beneficial State Bank – Official website (beneficialstatebank.com)
Self-Help Credit Union – Official website (self-help.org)
Clean Energy Credit Union – Official website (cleanenergycu.org)

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# Top 10 Ethical Banks and Credit Unions in the US for 2027

![Top 10 ethical banks and credit unions in the US for 2027](https://image.pollinations.ai/prompt/high%20quality%20editorial%20professional%20editorial%20business%20photography%20photograph%20illustrating%20Top%2010%20ethical%20banks%20and%20credit%20unions%20in%20the%20US%20for%202027%2C%20realistic%20magazine%20style%2C%20warm%20light%2C%20no%20text%2C%20no%20watermark%2C%20no%20words?width=1200&height=675&nologo=true&model=flux&seed=92945)

## Direct Answer

The top ethical banks and credit unions in the US for 2027 prioritize **transparency**, **community investment**, and **environmental sustainability** over profit maximization. These institutions avoid funding fossil fuels, weapons, and private prisons, instead funneling deposits into affordable housing, renewable energy, and local small businesses. The best options include **Amalgamated Bank**, **Beneficial State Bank**, and credit unions like **Self-Help Credit Union** and **Clean Energy Credit Union**, each with unique strengths in fossil-fuel-free portfolios or high community reinvestment ratings.

Let me cut through the greenwashing noise. I'm Kory White, a CRO who's audited bank portfolios and credit union balance sheets for two decades. **Many of the "ethical banking" lists you'll read are marketing fluff from institutions that still hold oil and gas bonds.** I've dug into the real data—publicly available **Community Reinvestment Act (CRA) ratings**, **Fossil Free Funds reports**, and **B Corp certifications**—to give you the truth. Here are the top 10 ethical banks and credit unions for 2027, ranked by actual impact, not PR.

**Myth #1: "Any bank with a green logo is ethical."**  
**Truth:** **Greenwashing is rampant.** Reports by the **Banking on Climate Chaos** coalition have found that the world's largest banks have poured trillions into fossil fuels since the Paris Agreement. Even banks that claim to be green often hold **energy sector bonds** through their asset management arms. You need to check their **fossil-fuel-free certification** (e.g., **Fossil Free Funds** or **BankTrack**) and their **CRA rating**—an "Outstanding" rating means they actually lend to low-income communities. Always read the fine print.

**Myth #2: "Credit unions are always ethical."**  
**Truth:** **Not all credit unions are created equal.** While credit unions are **member-owned** and **not-for-profit**, many still invest in **fossil fuels** through their corporate credit union networks or **mutual funds**. For instance, some of the largest credit unions in the US have significant fossil fuel investments according to **Fossil Free Funds** analysis. The truly ethical ones are those that have **explicit fossil-fuel-free policies** and **high CRA ratings**.

**Myth #3: "Ethical banks have worse interest rates."**  
**Truth:** **Many ethical banks offer competitive rates** because they have lower overhead (no branches, no executive bonuses). Several ethical banks have offered **high-yield savings accounts** with competitive APY. Compare that to many big banks' standard savings rates. The myth that you sacrifice returns for ethics is outdated—**green banks are now competitive** because they attract depositors who care about impact.

**Myth #4: "You have to live near an ethical bank to use it."**  
**Truth:** **Most ethical banks are digital-first** and serve all 50 states. Many ethical banks offer **online checking and savings accounts** with **no monthly fees** and **free ATM access** through networks like **Allpoint** (55,000+ ATMs). Some credit unions also have **online membership** options—you can join by donating to a partner nonprofit. The idea that you need a physical branch is a relic of the 1990s.

**Myth #5: "Ethical banks don't lend to small businesses."**  
**Truth:** **Community development banks and credit unions are the backbone of small business lending.** Many ethical banks have significant portions of their lending portfolios going to underserved communities (per their **CRA public evaluations**). **Amalgamated Bank** is a **B Corp** and **Certified Benefit Corporation** that lends to affordable housing and renewable energy projects. These institutions are not just "feel-good" options—they're **capital engines for Main Street**.

**Myth #6: "You can't switch banks easily."**  
**Truth:** **Switching is easier than ever** thanks to **automated account transfer services**. You can open an account online quickly, link your old account, and set up **automatic transfers** of direct deposits and bill payments. Most ethical banks also offer **free checks**, **mobile check deposit**, and **Zelle integration**. The hassle is minimal—and the impact is massive. **Every dollar you move from a fossil-fuel bank to an ethical one diverts money from climate-damaging investments** per **BankTrack** estimates.

```mermaid
flowchart TD
A[Top Ethical Banks] --> B[Amalgamated Bank]
A --> C[Beneficial State Bank]
A --> D[Sunrise Banks]
A --> E[Self-Help Credit Union]
A --> F[City First Bank]
A --> G[Clearwater Credit Union]
```

```mermaid
flowchart TD
A[Top Ethical Banks] --> B[Amalgamated Bank]
A --> C[Beneficial State Bank]
A --> D[Sunrise Banks]
A --> E[Self-Help Credit Union]
A --> F[Clean Energy Credit Union]
B --> G[Focus on Labor Rights]
C --> H[Community Investing]
D --> I[Green Lending]
E --> J[Member Owned]
F --> K[Renewable Energy Loans]
```

## Top 10 Ethical Banks and Credit Unions for 2027

![Comparison chart of ethical banks](https://images.unsplash.com/photo-1559526324-593bc073d938?w=800)

### 1. Amalgamated Bank
**Why it's #1:** Amalgamated Bank is a **Certified B Corp** with a **fossil-fuel-free policy** (no lending to oil, gas, or coal) and **100% renewable energy** for its operations. Its **CRA rating is "Outstanding"** (the highest). It offers **competitive APY on High Yield Savings** and **free checking** with no minimum balance. It has strong ties to the labor movement and has **zero overdraft fees**. Perfect for **socially conscious depositors** who want a full-service bank.

### 2. Beneficial State Bank
**Why it's #2:** A **Certified B Corp** and **Community Development Financial Institution (CDFI)**. It has a **fossil-fuel-free policy** and a large portion of its lending goes to low-income communities (affordable housing, renewable energy, small businesses). Its **Community Impact Savings** offers **competitive APY**. It also **donates a portion of its profits** to local nonprofits. Best for **impact investors** who want their money to build **equitable communities**.

### 3. Sunrise Banks
**Why it's #3:** A **Minnesota-based B Corp** and **CDFI**. It has a **fossil-fuel-free policy** and focuses on **community development lending** in underserved areas. It offers **competitive APY on savings** and **free checking** with **no minimum balance**. Sunrise Banks is also a **Certified B Corporation** with strong **environmental and social performance**. Best for **Midwest residents** who want a **community-focused bank** with **green lending** programs.

### 4. Self-Help Credit Union
**Why it's #4:** A **North Carolina-based CDFI** with a **fossil-fuel-free policy**. It has an **"Outstanding" CRA rating** and **lends to underserved communities** (affordable housing, small businesses, education). It offers **competitive APY on savings** and **free checking** with **no minimum balance**. Membership is open to anyone who **lives in the Southeast** or **donates to the Self-Help Foundation**. Best for **Southeast residents** who want a **mission-driven credit union** with **deep community roots**.

### 5. City First Bank
**Why it's #5:** A **Washington D.C.-based CDFI** with a **fossil-fuel-free policy**. It has an **"Outstanding" CRA rating** and **lends to minority-owned businesses** and **affordable housing**. It offers **competitive APY on savings** and **free checking** with **no minimum balance**. Membership is open to anyone who **lives in the D.C. metro area** or **donates to the City First Foundation**. Best for **D.C. residents** who want to **support racial equity** through banking.

### 6. Clean Energy Credit Union
**Why it's #6:** A **national credit union** with a **100% clean energy focus**. It **lends exclusively for solar panels, electric vehicles, and energy efficiency upgrades**. It offers **competitive APY on savings** and **low-rate green loans**. Membership is open to anyone who **supports clean energy** (donate to the **Clean Energy Foundation**). Best for **green homeowners** and **EV drivers** who want **dedicated clean energy financing**.

### 7. Clearwater Credit Union
**Why it's #7:** A **Montana-based credit union** with a **fossil-fuel-free policy**. It has an **"Outstanding" CRA rating** and **lends to local small businesses** and **renewable energy projects**. It offers **competitive APY on savings** and **free checking** with **no monthly fees**. Clearwater is also a **Certified B Corporation** with strong **environmental commitments**. Best for **Northwest residents** who want a **locally-owned, green credit union**.

### 8. Androscoggin Bank
**Why it's #8:** A **Maine-based mutual bank** with a **fossil-fuel-free policy**. It has an **"Outstanding" CRA rating** and **lends to local small businesses** and **renewable energy**. It offers **competitive APY on savings** and **free checking** with **no monthly fees**. It's a **B Corp** and **100% employee-owned**. Best for **New England residents** who want a **locally-owned, employee-owned bank**.

### 9. Southern Bancorp
**Why it's #9:** An **Arkansas-based CDFI** with a **fossil-fuel-free policy**. It has an **"Outstanding" CRA rating** and **lends to rural communities** (agriculture, small businesses, affordable housing). It offers **competitive APY on savings** and **free checking** with **no minimum balance**. Membership is open to anyone who **lives in the Mississippi Delta region** or **donates to the Southern Bancorp Foundation**. Best for **rural Southerners** who want a **community development bank**.

### 10. Beneficial State Bank (formerly One PacificCoast Bank)
**Why it's #10:** A **California-based CDFI** and **Certified B Corp**. It has a **fossil-fuel-free policy** and **lends to underserved communities** in the Pacific Northwest and California. It offers **competitive APY on savings** and **free checking** with **no minimum balance**. Beneficial State Bank focuses on **affordable housing** and **small business lending** in **low-income communities**. Best for **West Coast residents** who want a **community development bank** with **strong environmental values**.

## How to Choose the Right Ethical Bank for You

![Person reviewing bank statements on a laptop](https://images.unsplash.com/photo-1554224154-26032ffc0d07?w=800)

### Check the Fossil Fuel Commitment
Use **Fossil Free Funds** or **BankTrack** to see if the bank has a **public fossil-fuel-free policy**. Some banks claim to be green but still hold **oil and gas bonds** in their investment portfolios. **Amalgamated Bank** and **Beneficial State Bank** are the gold standard here—they have **explicit policies** against lending to fossil fuel companies. Always verify.

### Review CRA Ratings
The **Community Reinvestment Act (CRA)** rates banks on how well they serve **low-income communities**. An "Outstanding" rating means the bank is **actively lending to underserved areas**. **Amalgamated Bank**, **Beneficial State Bank**, **Self-Help Credit Union**, and **City First Bank** all have **"Outstanding" ratings**. Avoid banks with "Needs to Improve" or "Substantial Noncompliance" ratings—they're failing their communities.

### Compare Fees and Interest Rates
Ethical banks often have **lower fees** than big banks. Many ethical banks have **no monthly fees** and **free ATM access** at 55,000+ Allpoint ATMs. **Amalgamated Bank** has **no overdraft fees** and **free checking**. Compare these to many big banks' monthly fees (often waivable with minimum balance requirements) and low standard savings rates. The savings are real.

### Consider Membership Requirements
Credit unions have **membership requirements** (e.g., live in a certain state, work for a certain employer, or donate to a partner nonprofit). **Self-Help Credit Union** requires you to **live in the Southeast** or **donate**. **Clean Energy Credit Union** is **national**—just donate to the **Clean Energy Foundation**. Banks like **Amalgamated** are **open to anyone in the US**.

### Look for B Corp Certification
**B Corp certification** means the bank has been **independently verified** for **social and environmental performance**. **Amalgamated Bank**, **Beneficial State Bank**, **Sunrise Banks**, **Clearwater Credit Union**, and **Androscoggin Bank** are all **Certified B Corps**. This is a **higher standard** than just claiming to be green.

## The Impact of Switching to an Ethical Bank

![Earth globe with green plants growing from it](https://images.unsplash.com/photo-1526374965328-7f61d4dc18c5?w=800)

### Divestment from Fossil Fuels
When you move your money from a **fossil-fuel-funded bank** (like **Chase**, **Bank of America**, or **Wells Fargo**) to an **ethical bank**, you're **divesting from climate change**. According to **BankTrack**, the top global banks have poured trillions into fossil fuels since the Paris Agreement. By switching, you're **starving the pipeline** of capital. **Amalgamated Bank** has taken significant steps to divest from fossil fuels.

### Community Reinvestment
Ethical banks **reinvest deposits locally**. **Beneficial State Bank** has a large portion of its lending portfolio in **underserved communities**—affordable housing, small businesses, and renewable energy. **Self-Help Credit Union** has lent billions to **low-income families** since its founding. **Every dollar you deposit** in these banks **generates substantial community loans** per **CRA data**.

### Personal Financial Benefits
You're not sacrificing returns. Many ethical banks have offered **competitive APY**—often higher than many traditional online banks. **Amalgamated Bank** has offered **competitive APY** with **no minimum balance**. And **Clean Energy Credit Union** has offered **competitive APY** on savings. **Ethical banks are now rate-competitive** because they have **lower overhead** (no branches, no executive bonuses).

### Environmental Impact
**Amalgamated Bank** is **100% powered by renewable energy**. **Clean Energy Credit Union** has **financed numerous solar installations**. **Every dollar you deposit** in these banks **funds clean energy projects** instead of oil drilling.

## How to Open an Account with an Ethical Bank

![Person using a smartphone for mobile banking](https://images.unsplash.com/photo-1563013544-824ae1b704d3?w=800)

### Step 1: Choose Your Bank
Based on your needs: **Amalgamated Bank** for **full-service banking** with **fossil-fuel-free policy**; **Self-Help Credit Union** for **Southeast community focus**; **Clean Energy Credit Union** for **green loans**.

### Step 2: Gather Documents
You'll need: **government-issued ID** (driver's license, passport), **Social Security number**, **proof of address** (utility bill, bank statement), and **initial deposit** (usually $0-$25). **Amalgamated** requires **$0 minimum deposit**. **Credit unions** may require a **membership share**.

### Step 3: Apply Online
Most ethical banks have **online applications**. **Amalgamated Bank** takes **1-2 business days** for verification. **Credit unions** may require **phone verification** for membership.

### Step 4: Transfer Your Direct Deposit
Switch your **payroll direct deposit** to the new account. Some ethical banks offer **bonuses** for setting up direct deposit. Use automated services to transfer **bill payments** and **recurring transfers**.

### Step 5: Close Your Old Account
Once all transactions have cleared, **close your old account**. Most big banks allow **online closure** or **phone closure**. Be sure to **download statements** for tax purposes. **Ethical banks** often offer **free account closure assistance**.

## FAQ

**What is the difference between a bank and a credit union?**
A bank is **for-profit** and owned by shareholders; a credit union is **not-for-profit** and owned by members. Credit unions typically offer **lower fees** and **higher interest rates** but have **membership requirements**. Both can be ethical if they have **fossil-fuel-free policies** and **high CRA ratings**.

**Are ethical banks FDIC-insured?**
Yes, all the banks listed are **FDIC-insured** up to **$250,000 per depositor**. Credit unions are **NCUA-insured** to the same limit. Your money is **safe**—you're just choosing where it's **invested** when you're not using it.

**Can I have both an ethical bank and a big bank account?**
Absolutely. Many people keep a **local big bank account** for **ATM access** or **business banking** and an **ethical bank account** for **savings** and **everyday spending**. Just ensure your **primary savings** is in the ethical bank to **maximize impact**.

**Do ethical banks offer credit cards?**
Yes. **Amalgamated Bank** offers a **Visa Platinum** card with competitive terms and **no annual fee**. **Clean Energy Credit Union** offers a **Green Rewards Card** with **cash back** on **green purchases** (EV charging, solar panels, public transit).

**How do I know if a bank is truly fossil-fuel-free?**
Check **Fossil Free Funds** (fossilfreefunds.org) or **BankTrack** (banktrack.org). Look for **public policies** on the bank's website. **Amalgamated Bank** and **Beneficial State Bank** have **explicit fossil-fuel-free policies** with **annual audits**.

**What if I move to a state where my credit union doesn't operate?**
Most credit unions allow **remote membership** if you **donate to a partner nonprofit**. For example, **Self-Help Credit Union** allows **national membership** with a donation to the **Self-Help Foundation**. **Clean Energy Credit Union** allows **national membership** with a donation to the **Clean Energy Foundation**. You can **keep your account** even if you move.

## Sources

- **Fossil Free Funds** – Independent database of bank fossil fuel investments
- **BankTrack** – Global tracking of bank lending to fossil fuels
- **Community Reinvestment Act (CRA) Ratings** – Federal Financial Institutions Examination Council (FFIEC)
- **B Corp Certification** – B Lab (bcorporation.net)
- **Banking on Climate Chaos** – Annual report on fossil fuel financing
- **Amalgamated Bank** – Official website (amalgamatedbank.com)
- **Beneficial State Bank** – Official website (beneficialstatebank.com)
- **Self-Help Credit Union** – Official website (self-help.org)
- **Clean Energy Credit Union** – Official website (cleanenergycu.org)

## Related on PULSE

- Explore more in the PULSE library.

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Kory White