Checking account is the same as checking account? Not quite. Because there are banks that attach ethical and ecological standards to their products. But does that really mean anything? And how much is it?
In everyday life, nothing works without a checking account: this is where the monthly salary comes in, from where cash is withdrawn or the rent is transferred. And while bookings look similar everywhere, there are certain differences. There are banks that place greater value on sustainability - their products are subject to certain standards, including current accounts. So can I do good with a sustainable checking account? Answers to important questions:
What is a sustainable checking account anyway?
A sustainable checking account is an account held with a credit institution that is committed to complying with certain environmental and ethical standards. These can stipulate, for example, that the bank does not do business with companies that profit from armaments, gambling addiction, pornography or child labour.
But the individual offers are very different, so you should definitely compare them, advises the Verbraucherzentrale (VZ) Bremen. The differences start with the terminology. VZ notes that designations such as "sustainable", "ethical" or "social" are not protected in the financial sector. Therefore, you should take a close look at what that really means at the respective bank. Because each has its own guidelines - investments in nuclear power, coal and oil production are not always excluded.
How much do sustainable current accounts cost compared to conventional ones?
The costs for account management at banks with sustainability standards are usually at market level. As a rule, you can't save money with it, says Annabel Oelmann, head of the consumer center in Bremen. "But if the ethical idea is worth something to you, that's a great thing."
VZ Bremen compared twelve sustainable current accounts. The result: The spectrum ranges from a free account to an account with an annual account management fee of 120 euros. The bulk is between 20 and 81 euros. Some institutes do not charge anything for the giro card, others charge up to 15 euros. Some banks also charge a custody fee, i.e. fees on savings deposits.
There are also big differences in the overdraft interest between zero and 9.96 percent. A large part of the sustainable banks rely on the free and nationwide use of ATMs in the widespread bank card service network - this enables cash withdrawals at many Volksbanks and Raiffeisenbanks.
How does a change work?
Switching to a sustainable checking account is relatively straightforward. The banks even have to support their customers when they change accounts - this has been stipulated by the Payment Accounts Act since 2016. Standing orders and direct debit mandates are easily transferred to the new account.
When choosing, you should pay attention to the purposes for which you are using the account, advises consumer advocate Oelmann: Should it be a business or private account, do you want to use it with your partner, is a youth account required? Do you often withdraw cash on the go or do you prefer to pay by card? All these questions should be considered when changing.
And who is it worth it for?
Anyone who can do without a nationwide branch network and is willing to pay moderate fees for their checking account should think about switching, advises the Bremen consumer advice centre. The bottom line is that this is worthwhile for everyone for whom sustainable management is important.
In any case, awareness of sustainability in the financial sector is increasing. "We notice that very clearly in the inquiries," says Oelmann. The 2022 market report by the Sustainable Investment Forum also shows a trend for Germany: banks with a focus on sustainability are still on a growth course.
Can you change the world with a bank account?
With a current account, the owner's influence is limited. With a long-term investment in a bank that works sustainably, you can support environmentally friendly or social projects such as the construction of wind turbines or kindergartens in a more targeted manner. For this reason, the environmental bank, for example, does not offer a current account, but instead offers savings and investment products.
But it doesn't matter which product you choose: "With every small step that ensures sustainability and conserves resources, you make the world a better place," says Oelmann.
