12:42 03 May 2013
Socially responsible savings, also known as ethical savings or charity savings account, is a positive way to not only a positive reason to put money aside but to pass the benefits of pooled funds forward to a common interest community project.
Unlike regular bank accounts that are lending out to the business community first and foremost, with socially responsible environmental or social community projects further down on the list, banks with ethical savings programs as part of their line of services will only support them.
Justification is the main reason many people don’t or are unable to create or maintain savings accounts. Personal financial concerns to just maintain basic standard of living have taken precedence to financial advice to put aside in minimal amounts of monthly income, with the justified concerns of it only to feed those fat cats further up the financial ladder.
Assurances that any moneys that are placed into accounts that are specifically designated as ethical savings that invests into truly humane and conscientious projects allows the saver to be helping and concerned neighbours in the community.
Additional ethical investing can be found as bonds, lending, and mortgages to hand in hand with personal and organizational efforts to encourage what use to be fair trade as well as human and environmental dignity.
• Although more community oriented, returns on the funds invested can be significantly lower than the “norm”
• As with any form of investing, and having an ethical savings account is a form of investing, investigate the company or organization thoroughly. Remember that with most investments, they are not insured against losses due to major drops in the financial markets bad company investments, etc. that has plagued other financial institutions. As with any investments, can you afford to lose that money without creating any hardship to your standard of living?
• Research any banking fees for services and how they compare to those of regular banks. Are they in line with what other banks are doing?
Having some control as to where your money goes enlighten by the many accounts of the misconduct by financial institutions these days, working with banks that institute ethical practices and offer ethical savings and investing may bring the much need correction points to the rest of the financial community.
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