What is an ethical ISA in the UK?
An ethical ISA is an individual savings account that invests in socially responsible and environmentally sustainable companies. To learn more about this type of savings account, consider its main features:
- Ethical criteria are fundamental in the identification of these accounts. Focus on companies that have a positive social and environmental impact.
- Individuals can invest in the following types of ethical accounts - Cash Investment Saving Account or Stocks and Shares ISA
- As part of ethical investing, you can be sure that your funds will not be invested in such industries as tobacco, weapons, and fossil fuels.
- Tax-Free Growth: As with conventional ISAs, ethical ISAs guarantee tax-free growth to grow your net income
Thus, we can conclude that ethical accounting is not only about investments but also about values. Therefore, we recommend that you familiarize yourself with the offers of banks and financial institutions in more detail, compare interest rates and other savings account parameters.
Calculate future income on a 1-year term deposit (example):
| Amount, $ | Rate, % | Accrued %, $ |
| 25,000 | 4.00% | 1,000 |
| 25,000 | 4.05% | 1,013 |
| 25,000 | 4.10% | 1,025 |
| 50,000 | 4.50% | 2,250 |
| 50,000 | 4.55% | 2,275 |
| 50,000 | 4.60% | 2,300 |
| 100,000 | 5.00% | 5,000 |
| 100,000 | 5.05% | 5,050 |
| 100,000 | 5.10% | 5,100 |
| 200,000 | 4.50% | 9,000 |
| 200,000 | 4.55% | 9,100 |
| 200,000 | 4.60% | 9,200 |
