The Difference Between Green Banking and Banking Green
April 27, 2009
Have you heard or seen your bank or another bank promote their "banking green" services? You know the basic online banking services like online bill payments, electronic statements, and direct deposit which are supposed to reveal to you the extreme dedication of your bank to the environment. Well, these services actually do help the environment by reducing paperwork and the manpower used for the clearance of paper checks, statements, and deposit tickets. But, what your bank may not be telling you is that your willingness to help the environment by banking online is also helping the bank's bottom line. In other words, the more banking you do online - the less processing expenses the bank will run up. Does the bank kick this money back to you in the form of higher deposit rates or lower account fees? No. Does it donate it to eco-friendly organizations? Probably not. Instead, it goes straight to the bank's profitability.
If you are confused it might be because your decision to "bank green" does not make your bank a "green bank." Green banking is a term that encapsulates a little more commitment from your bank. In fact, your bank might be an egregious polluter with a carbon footprint a mile wide even though it offers great online banking services. Don't despair though, truly green banks do exist in the United States. One example is ShoreBank Pacific located in the state of Washington. Far beyond just paying a little lip service to reducing paper, ShoreBank Pacific specifically makes loans that reduce the environmental impact of the borrower's business. In addition, ShoreBank scores their loans annually to ensure that the business is making a continuing solid commitment to environment-friendly business practices. These are loans that can make a real difference to the planet. Other eco-friendly banks even go so far as to donate a portion of their profits to non-profit organizations dedicated to sustaining the environment. A commitment from your bank like this qualifies the bank as a "green bank."
So what if you are just a typical retail banking customer with a small savings account or a checking account and who also wants to be using an eco-friendly bank? Maybe you don't own a business that needs a loan to become more energy-efficient or other financing needs and just have a simple $1,000 checking account. Green banks like ShoreBank Pacific also offer a full suite of banking products for individuals including money market accounts, checking accounts, savings accounts, and CDs. In fact the 5-year CD offered today by ShoreBank Pacific is yielding a very competitive 3.34% for accounts with deposits over $10,000. So, if you want to bank green go ahead and sign up for some online banking services at your current bank. But, if you want to find a green bank in your area you need to do some research on a site like MoneyRates.com. The environment will thank you.
