Triodos Bank is an “ethical bank” based in the Netherlands. They only fund sustainable initiatives like social enterprises, organic farming, and renewable energy with deposits from its customers.
In this review, we’ll focus on the features of various Triodos Bank investments.
If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or WhatsApp (+44-7393-450-837).
This includes if you are looking for a second opinion or alternative investments.
This article is here for informational purposes only, and some of the facts might have changed since it was written. So, potential investors shouldn’t invest or decide not to invest based on this review alone.
Triodos Bank Investment Options
Triodos Ethical Savings Bond
This savings plan offers:
- The Triodos One Year Ethical Savings Bond has a fixed gross interest rate of 3.50%, with a one-year lump sum lockup.
- Triodos Two Year Ethical Savings Bond has a fixed gross interest rate of 3.70%, with a two-year lockup.
You can save 500 pounds to a million pounds in this account. If you would like, the bank may deposit the funds into your specified account once a year, monthly, or at the bond‘s expiration.
This bond’s ethical investment approach is one of its unique selling points. The money that savers deposit is used by the bank to make loans to businesses that benefit society and the environment.
Unless a sole depositor passes away or in other extraordinary situations determined by the bank, funds cannot be withdrawn during the bond’s term following the preliminary 30-day period.
At maturity, savers have the option of moving their money to another account or reinvesting it. If no instructions are given, the money will be transferred to a savings account with a variable rate.
Stocks and Shares ISA
The three stocks and shares ISA funds offered by the firm invest in publicly traded companies and bonds. You can choose to participate in all or just one of them to diversify your investments.
The three impact investment vehicles are:
- Triodos Global Equities Impact Fund
- Triodos Pioneer Impact Fund
- Triodos Sterling Bond Impact Fund
You have the choice of investing a lump sum or at least 25 pounds per month. You can top up between 250 and 20,000 pounds every tax year.
Triodos Innovative Finance ISA / IFISA
Only the bank’s crowdfunding platform can be used to set up an IFISA. All possible investments eligible for your ISA will be displayed on this platform, and you can choose which ones you wish to hold.
There are limitations on which bond bids are eligible, while share offerings are not backed. You will be given the option to invest directly in the bond or indirectly through the IFISA when you register.
Both the offer letter and the crowdfunding platform will clearly outline the eligible bond offerings.
The Stocks and Shares ISA and IFISA require that you be a UK resident and at least 18.
Investment funds
There’s a selection of such funds that emphasize ethical and sustainable ventures, including fair trade and organic farming.
The Investment Account and the Triodos Stocks & Shares ISA are two tax-favored investment vehicles.
Remember that investments carry a higher risk than savings account funds. It is best to hold onto investments for a long time as they may not yield a profit equal to the first expenses and their value may fluctuate.
Do note that such investments are not covered by the UK Financial Services Compensation Scheme or FSCS.
Crowdfunding
Fundraising for green community projects can be done by individuals and organizations using their crowdfunding platform. You only need 50 pounds to begin building a portfolio.
Requirements to apply include:
- Anyone who lives in the UK and is not under 18 years old
- has a high net worth, is a self-certified sophisticated investor, or meets the requirements to be referred to as a restricted investor
Prospective investors must demonstrate that they are aware of the typical risks involved in their endeavor.
Similar to how individuals can invest if they can categorize themselves and demonstrate the previously mentioned expertise, institutions and organizations can also do so.
You run the risk of losing money because investors are not covered by the FSCS. Dividends and the repayment of capital and interest will depend on how well the company’s business plan works.
Of course, past performance does not guarantee future outcomes.
Note that not every customer may be a good fit for Triodos Bank investments, as they may be riskier than traditional options.
Besides, they might not be as good as those of other investment firms, which could be a drawback for clients who need more alternatives.
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Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.
