Young adults still prioritising ethical savings amidst cost-of-living crisis, marking shift in attitude, finds Gatehouse Bank
- Two thirds (65%) of 18–24-year-olds prioritise ethical savings over financial returns compared to under a fifth (18%) of 65+ year olds
- Research coincides with Gatehouse Bank’s relaunch of Easy Access savings and Easy Access Cash ISA accounts with a minimum deposit of £1
- 36% of respondents identify cost-of-living crisis as setback to their ethical commitments
Gatehouse Bank has today revealed new research that shows young adults are still prioritising ethical savings options despite the cost-of-living crisis, marking a shift in attitude compared to older generations.
The research shows that almost two thirds (65%) of those aged 18 to 24 would continue to choose an ethical savings account in the current economic climate. This would remain the case even if it would offer lower financial returns than a non-ethical alternative.
Considering this, Gatehouse Bank has today relaunched its Easy Access Cash ISA and Easy Access savings account with a minimum deposit of £1 – a change designed to benefit young people looking to create healthy, but ethical, savings habits. Both Easy Access Cash ISA and Easy Access savings account products are now offering competitive rates of 1.75% and 2.00%, respectively.
Similar attitudes were not observed amongst other age groups, where just over a quarter (27%) of those aged 45-54 would prioritise ethical savings and less than a fifth (18%) of both the 55-64 and 65+ age groups said they would do so. The difference in generational attitude is clear and welcome.
However, the cost-of-living crisis is straining people’s ethical commitments, with over a third (36%) of all respondents revealing that the current economic pressure had lowered their interest in ethical savings options. While many feel that strong financial gains and ethical choices are mutually exclusive, this is incorrect, as lenders can and should provide options that allow people to align their finances with their values.
Gatehouse Bank offers award-winning Woodland Saver Accounts and Woodland Cash ISAs, which support the creation of new woodlands in the United Kingdom by planting a tree for every account opened or renewed. All Woodland Saver and ISA rates have recently increased:
Fixed Term Woodland Saver account rate changes
|Product||Old Rate||New Rate|
|1 Year Fixed Term Woodland Saver||2.95%||3.15%|
|18 Month Fixed Term Woodland Saver||3.00%||3.25%|
|2 Year Fixed Term Woodland Saver||3.10%||3.40%|
|3 Year Fixed Term Woodland Saver||3.15%||3.42%|
|4 Year Fixed Term Woodland Saver||3.16%||3.43%|
|5 Year Fixed Term Woodland Saver||3.25%||3.51%|
Fixed Term Cash ISA rate changes
|Product||Old Rate||New Rate|
|1 Year Fixed Term Woodland Cash ISA||2.20%||2.50%|
|18 Month Fixed Term Woodland Cash ISA||2.25%||2.60%|
Further product updates
This news also coincides with the following updates to Gatehouse Bank’s product line:
- 95 Day Notice Account increased from 1.90% to 2.20%
- 120 Day Notice Account increased from 2.00% to 2.30%
Deposits are not used to support sectors such as alcohol, gambling, tobacco, adult entertainment, and the arms industry as the bank is Shariah-compliant. It also means its savings products have an Expected Profit Rate instead of a fixed interest rate.
Ravi Kumar, Senior Product Manager, Gatehouse Bank, commented: “It is encouraging to see young people continue to prioritise their values amidst the cost-of-living crunch. We are hopeful that the latest generation of savers are the most ethically conscious yet.
“However, the stark generational divide does reinforce the need to boost awareness around non-traditional savings methods. Finance and ethical values can and should work in tandem – they are not mutually exclusive.”