Compare Triodos ISAs

Who are Triodos Bank?

Triodos Bank are an ethical bank headquartered in the Netherlands with branches in multiple European countries, including the UK.

Founded in 1980, they advocate a sustainable banking policy within their lending and investing criteria. This includes a screening process ensuring that they only invest and lend to companies and charities making some form of social, cultural or ecological benefit.

Common investment sectors for Triodos bank include renewable energy and sustainable farming, while they rule out investing in companies with any involvement in nuclear energy, fur, weapons, and environmentally dangerous materials.

Triodos offer a range of financial services to retail customers including bank accounts and savings accounts, including Cash ISAs and Stocks and Shares ISAs.

What is an ISA account?

An ISA account is a type of savings account for individuals that shelters your savings and investments from UK tax.

You are allowed to contribute up to £20,000 to ISAs in the current tax year, and your allowance refreshes in April each year.

You can split your £20,000 allowance between a Cash ISA and Stocks and Shares ISA, but you can’t invest in more than one of each ISA type in the same tax year.

Within an ISA, the money you save is completely free from the following forms of tax:

1. Income Tax – interest and dividends from your investments are usually taxable, but not in an ISA.
2. Capital Gains Tax – you usually pay tax on the growth of any stocks and shares you invest in, but these profits are tax-free in an ISA.

What’s the difference between Cash ISAs and Stocks and Shares ISAs?

Cash ISAs and Stocks and Shares ISAs are the two main types of ISA accounts.

Cash ISAs are for cash savings only - you earn an interest rate on the value of your account.

Stocks and Shares ISAs can invest in the stock market through shares, funds and other investment vehicles – the value of your account can go down as well as up.

Cash ISA Basics:

1. Cash ISA savings cannot go down in value
2. Earn either a fixed or variable rate of interest on your balance
3. Invest for a fixed term, or in an instant-access Cash ISA that allows for withdrawals
4. The interest you earn is 100% tax free

Stocks and Shares ISA Basics:

1. Invest in funds, shares, ETFs and other investment assets
2. The value of your ISA can go down as well as up
3. You can benefit from tax free growth and dividends
4. You can usually withdraw at any time

Triodos Bank offer Cash ISAs and Stocks and Shares ISAs.

What type of Cash ISA does Triodos offer?

Triodos’ Cash ISAs are unique in that they maintain their ethical standards when selecting whom they will lend your money to.

Triodos current only offer a variable-rate instant-access Cash ISA and not a fixed-rate ISA product.

Triodos Cash ISA features:

1. Variable interest rate
2. Instant withdrawals are permitted
3. Your investment cannot go down in value
4. No tax to pay on your earned interest

What type of Stocks and Shares ISA does Triodos provide?

Interest rates in the UK are at record lows which has led to many people preferring to invest in the stock market in search of greater returns.

Triodos’s Stocks and Shares ISA enables you to invest in their three impact investment funds – each of which is managed with a strict ethical policy held at the forefront of all investment decisions.

Triodos Stocks and Shares ISA features:

1. The value of your investments can fall as well as rise.
2. No tax to pay on your investment growth or dividends.
3. Withdraw at any time.

How do I open a Triodos ISA?

You can apply for a Triodos ISA online and create an account within a matter of minutes.

To open a Triodos Cash ISA you must be at least 16 years old.

To open a Triodos Stocks and Shares ISA you must be at least 18 years old.

You must also be a UK resident to invest in an ISA and own a UK bank account that you can make your initial contribution from.

Can I transfer my existing ISA to a Triodos Bank Ethical ISA?

Yes, you can transfer any of your previous years’ ISAs held with other providers into a new ISA account with Triodos.

To do so, you will need to complete Triodos’s ISA transfer form and return the form to them in the post.

Triodos will then complete your ISA transfer for you on your behalf.

Make sure to:

1. Check with your previous ISA provider whether you’ll be charged for transferring out.
2. Complete an ISA transfer form and don’t withdraw your ISA manually and transfer the funds to Triodos – this will result in you losing your ISA allowance.