Socially Active Saving Gaining Momentum

Saving your money isn’t always only about getting the best rates on CDs, saving accounts, or checking accounts. Sometimes, saving your money is something you’re doing for the good of society, as well as yourself.

So goes the doctrine of a new class of investor: the social investor. This group is interested in what banks do with their money, rather than making decisions purely on monetary factors such as getting the best interest rates.

Faith-based investing has been the most active part of the social investing movement thus far. As detailed in this informative article, investments in the community by faith-based groups currently total about $100 million.

The idea of inquiring about what banks do with your saved funds is not confined to faith-based organizations. Evidence indicates that more savers are asking banks to do social good with their money.

According to Lisa Woll, CEO of the Social Investment Forum, community investing increased from $4 billion in 1995 to almost $26 billion in 2007.

It seems likely that the financial calamities of the past year and a half may give the social saving crowd a boost. Clearly, the financial fates of Americans are inextricably interlinked.

Social saving seeks to make that togetherness a good thing.