Individual Savings Accounts (ISAs) are a way to save and invest while protecting any returns from UK tax.

What is an ethical ISA? 

An ethical ISA is a savings or investment account which focuses on aligning financial growth with positive social, environmental and ethical values. Rather than just focusing on profit, investments or savings in ethical ISAs are carefully selected based on their positive impact, ensuring their funds are used to do good. 
 
For example, a Triodos Stocks and Shares ISA might invest in renewable energy, community housing or organic sustainable agriculture. Triodos will never use money to fund harmful industries like fossil fuels, tobacco, arms or fast fashion. 
 
In short, Triodos allows customers to save or invest in line with their values, supporting initiatives that work towards a more sustainable future. 
 
Please bear in mind that while this article is intended to be useful, it is not financial advice. Investing is a risk and you may get back less than you put in. 

Keep in mind that ISA and tax rules change and that any benefits will depend on your circumstances. The features and rules of ISAs outlined here are for the 2024/25 tax year. 

How much can I put into ISAs? 

The personal ISA allowance is £20,000 each tax year. This allowance is annual and if it is not used it will be lost. Each year the allowance resets on 6 April. You don’t need to pay UK tax to open or contribute to an ISA, but you must be a UK resident.  
 
If you have a Junior ISA (JISA) for a child, the allowance is £9,000. It's not currently possible to open a new Junior ISA with Triodos, but we can accept payments into existing ones. 
 
Whether you have savings or investments in an ISA, there’s no income tax to pay on any dividends or interest, and no capital gains tax to pay if you make a profit on your investments - allowing you to keep all the money you make. With the tax increases announced in the Autumn Statement last year, ISAs have become more valuable than ever. Consider maximising your allowance before the 5 April deadline. 

What types of ISAs are there? 

Cash, JISA, Stocks and Shares, and IFISA are all types of ISAs, and each has its own unique benefits. It is important to understand how they work so you can find the best suited ISA for your needs. Remember, whether its a savings or investment ISA any interest earned is tax-free. 
 

Cash ISAs: 

• The Triodos Online Cash ISA is an easy-access account, allowing you to withdraw money whenever you like. 

• The Fixed Rate Cash ISA aims to pay a higher interest rate, but you need to leave your money until the end of the term to receive it. 

JISAs: 

• A children’s savings or investment account (these can be Cash or Stocks and Shares). Triodos are not currently accepting new applications for JISA but existing accounts can be topped up.  

Is investing right for me? 

ISAs aren’t just for savings; they can be used for investments. Keep in mind that investments aren’t like cash savings; their value can change over time based on the performance of the investment. Depending on the value when you sell, you could get back less than you put in. 

Triodos offers two types of ISAs for investments: 

• The Stocks & Shares ISA allows customers to invest in sustainable listed companies via our impact funds. 

• The Innovative Finance ISA allows customers to directly invest in organisations via our crowdfunding platform. 

Why should I choose an ethical Triodos ISA? 

If you haven’t done so already, take some time to research your bank and learn how they are using your money. You might be surprised at what you discover. If your bank doesn’t reflect your values, consider switching to an ISA with impact.

How to open a Triodos ISA

To open a Triodos ISA, you'll need to download the Triodos Mobile Banking App if you don't already have it. It's simple, secure, and takes less than 15 minutes to apply. Once you have applied, we will get your account up and running as quickly as possible.

Keep in mind that investments carry risks and are not the same as depositing your money into a savings account. There's a possibility you may not get back what you initially put in.  

Remember, the tax benefits of an ISA are subject to change and depend on individual circumstances.  

Find out more.