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7 Environmentally Friendly Banks

Updated
Joel O'Leary
Author: Joel O'Leary
Joel O'Leary
Joel O'Leary
Full-Time Personal Finance Writer

Joel O’Leary is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, mortgages, and other personal finance topics. Joel has been writing about personal finance since 2018, previously leading editorial content for the How To Money podcast and serving as a resident writer at Budgets Are Sexy. He bought his first rental property at age 18, funding the down payment with savings from his high school job at McDonald’s -- a testament to his lifelong passion for smart money decisions. His work aims to make personal finance accessible and actionable for everyday readers. When he’s not writing, Joel enjoys surfing and spending time with his family.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. APY = Annual Percentage Yield.

I've always believed that where you keep your money matters.

Imagine your cash sitting in a bank that supports renewable energy, community development, or other projects that are good for the environment -- instead of financially helping industries that harm it.

That's the idea behind eco-friendly banks. It's a growing trend for people who want their financial choices to reflect their values.

What is an eco-friendly bank?

An eco-friendly bank (aka "green bank") considers environmental impact when deciding how to use customer deposits. Instead of quietly funneling money into fossil fuels or other high-pollution industries, these banks prioritize transparency and direct more funds toward projects that benefit the planet.

That often means investing in renewable energy, clean transportation, sustainable housing, and other green initiatives -- while avoiding or limiting support for companies tied to deforestation, oil, and coal.

In short, they give you a way to align your everyday banking with a healthier, more sustainable future.

Banks that are environmentally friendly

1. Forbright Bank

Forbright Bank is a Green Business certified bank that partners with the National Park Foundation and maintains a carbon-neutral operational footprint. This bank is also a supporter of the Nature Conservancy and offers employee benefits for composting, solar installation, and electric vehicle purchases.

Along with its positive impact on the environment, Forbright Bank is currently offering some of the best APYs on savings accounts and 1-year CDs.

The Forbright Bank Bright Checking account can only be opened at a Forbright Bank branch, but it offers a competitive tiered APY system for customers with higher balances.

2. Ponce Bank

Founded in the Bronx, New York, Ponce Bank is a community development financial institution (CDFI) and designated minority depository institution (MDI) -- Ponce Bank is dedicated to providing banking services for communities that are often underserved and underbanked.

In its 2023 Impact Report, Ponce Bank says it formalized an ESG (Environmental, Social, Governance) strategy and launched a management ESG committee to guide sustainability and transparency efforts. The bank also explicitly states that it does not invest customer money in fossil fuel extraction.

Ponce Bank checking accounts are a great choice if you want to avoid checking account fees. It also offers high APYs on CDs and money market accounts if you open your Ponce Bank account through Raisin.

3. Atmos Financial

Atmos Financial is a fintech company focused on fighting climate change -- its bank accounts exclusively fund solar projects. The Atmos Cash-Back Checking account offers up to 5% cash back rewards when you spend at hundreds of sustainable brands, and the Atmos High-Yield Savings account pays a competitive APY when you make a monthly donation to a climate nonprofit.

4. Amalgamated Bank

Amalgamated Bank has pledged not to lend money to fossil fuel companies, and was the first U.S. bank to publicly share its Net Zero Climate Targets. In fact, 32% of all loans issued by Amalgamated Bank are focused on climate change solutions, such as solar energy projects.

This bank also offers a Fossil Fuel Free Portfolio and other ESG investment products, so you can invest in companies that are dedicated to renewable energy and eliminating carbon emissions.

5. Clean Energy Credit Union

Clean Energy Credit Union is an online-only credit union that specializes in loans for clean energy (like solar panels and geothermal heat pump systems), electric vehicles, and more. The Clean Energy Credit Union Rewards Checking account pays a competitive APY for balances up to $15,000.

Although this credit union's savings account APY is poor, its certificates (CDs) are much more competitive with the best CD rates.

6. Climate First Bank

Climate First Bank is the nation's first climate-focused community bank, founded on principles of sustainability, social justice, and good governance. It has already funneled hundreds of millions into projects like rooftop solar, affordable housing, and small business development, and holds both B Corp and 1% for the Planet certifications.

Alongside its impact mission, the bank offers checking, savings, CDs, and high-yield savings accounts with competitive rates, giving customers everyday banking tools that align with a greener future.

7. Spring Bank

Founded in 2007, Spring Bank is New York's first B Corp bank -- meaning it is dedicated to socially responsible business practices and using the power of business to make the world a better place. This eco-friendly bank is also a member of Bank.Green's Fossil Free Banking Alliance; Spring Bank has never provided financing to fossil fuel projects.

And Spring Bank is not just an environmentally friendly bank; it also provides high APYs on savings accounts and CDs.

Why environment friendly banking matters

Here's the thing: your money doesn't just sit in your bank account. Behind the scenes, banks are constantly putting those dollars to work -- funding mortgages, business loans, or in some cases, massive oil and gas projects.

That means even if you're trying to live sustainably, your deposits could be quietly fueling industries that don't line up with your values.

Switching to an eco-friendly bank is a simple way to flip that script. Instead of your cash backing pipelines or coal plants, it can support rooftop solar, community housing, or local small businesses. It's like casting a vote with your money -- one that says, hey, I care about the future I'm saving for.

How to identify an environmentally friendly bank

There are a few good ways to find an eco-friendly bank -- but you don't have to take the bank's word for it.

Environmentally friendly banks tend to have a few major certifications and participate in green banking organizations to show that they are committed to fighting climate change and not investing in fossil fuels.

Certifications

Here are a few certifications and alliance partnerships to look for in an eco-friendly bank:

  • 1% for the Planet
  • Bank.Green Fossil Free Certified
  • Certified B Corp
  • Global Alliance for Banking on Values
  • U.S. Green Building Council
  • Net-Zero Banking Alliance
  • Partnership for Carbon Accounting Financials (PCAF)

Products and investments

Along with these partnerships and certifications, many green banks provide special eco-friendly banking products and investment offerings. These might include:

  • Electric vehicle loans
  • Energy efficiency home improvement loans
  • Fossil free investment funds
  • Geothermal heat pump system loans
  • Solar loans

Bottom line

The fight against climate change is becoming more urgent with each new season of destructive storms and record-breaking temperatures. If humanity wants to avoid the worst-case scenarios of climate change, the way we spend our money (and where we keep our money) matters more than ever.

Choosing a green bank for your next checking account or savings account can make a big difference for your local community and for the planet. And eco-friendly banks might even give you better checking account rewards and higher savings account APYs.

FAQs

  • Yep. Just like traditional banks, most are FDIC-insured (or NCUA-insured if they're credit unions). That means your deposits are protected up to the standard limits. Always double-check before you open an account, but safety usually isn't an issue.

  • Not really. Many eco-friendly banks offer checking, savings, and CDs with rates that are right in line with (or sometimes better than) mainstream banks. You don't have to choose between doing good and earning a fair return.

  • It comes down to transparency and intention. Green banks clearly share where your money goes, avoid financing fossil fuels, and direct deposits into clean energy, community development, or other sustainable projects.