Alternatives to the Big Bad 5
When if comes to your personal banking, the big 5 are not your only option! When managing your money, you actually have two options: commercial banks and credit unions. In practice, when it comes to your personal banking, there is very little difference between a commercial bank and a credit union.
Commercial Banks:
Commercial banks, like the Big 5, are for-profit institutions owned by their shareholders. This means that they operate with the intention of turning a profit for those shareholders and are often traded on the stock market. As with most for-profit corporations the more shares someone owns, the greater influence they have over the decisions that are made by the bank.
Credit Unions:
Credit Unions are not-for-profit financial cooperatives, designed to serve their members. They are member owned. This means that any depositor is a member and gets an equal vote in board member elections regardless of the amount of their deposit.
Photo by Joshua Best
Both credit unions and commercial banks are safe, government-backed options offering savings and checking accounts, credit and debit cards, mutual funds, loans, investments and financial planning guidance.
What are some of the benefits of banking with a credit union?
Member Owned
As stated above, credit unions are member owned, and every depositor is given an equal vote. Therefore, unlike with commercial banks, your influence on the decisions being made are not dependent on how much money you can afford to invest. Credit unions offer deeper democracy in their practices, as they practice one-member-one-vote, instead of the one-share-one-vote system of commercialized banks.
Higher Interest Rates
In general banking with a credit union will yield higher interest rates on deposits, and will have lower interest rates on loans. This is because the financial cooperative’s interest is in maximizing benefits for members, rather than turning a profit for shareholders.
Transparency
Unlike the big 5, credit unions are more than willing to offer transparency. If you inquire about another credit union NOT included on the list below, please contact us! We want to hear about your experience! We will continue to provide an updated list of the least heavily fossil fueled credit unions available.
Photo: Cheryl Skylar Cheung
What financial institution options are available to me?
The following list is compiled from Climate Pledge Collective (CPC), B Lab, Bank.Green and our own research. All listed financial institutions offer federal or provincial deposit insurance on chequing and savings accounts.
Nationally
Alterna Bank: An online bank owned by Alterna Savings. Confirmed with CPC that they do not have any commercial loans to the fossil fuel industry. A note that it has not been confirmed whether future loans will follow similar policies.
Motusbank: An online bank owned by Meridian Credit Union. They are currently developing a fossil fuel financing exclusion policy.
Laurentian Bank: Although Laurentian only has branches in Quebec, you can open an account online anywhere in Canada, if you have reached the age of majority. A copy of their fossil fuel exclusion policy can be found here.
Business Banking Only - Vancity Community Investment Bank: VCIB is a subsidiary of Vancity Credit Union that provides financing and investment products to non-profits, social enterprises and purpose-driven businesses in all provinces expect Quebec. They work solely with partners working on social, economic and environmental change, and like their parent group, do not provide services to the fossil fuel industry.
| Alterna Bank | Motusbank | Laurentian Bank | |
|---|---|---|---|
| Chequing account fees | Free | Free | $4 to $14.75/month; >18 or a student: free option; 60+: discounted |
| Savings account interest | 2.25% | 2.50% | 3.00% |
| e-Transfer fee | Free | Free | $1 (free on Unlimited account) |
| Credit cards | No | No | Yes |
| Business banking | Yes | No | Yes |
| Branch network | None | None | Quebec |
| Online banking and mobile app | Yes | Yes | Yes, but no mobile cheque deposit |
| ATM network | The Exchange | ||
| Deposit insurance | CDIC | ||
In Ontario
Alterna Savings: Confirmed with CPC that they do not have any commercial loans to the fossil fuel industry. A note that it has not been confirmed whether future loans will follow similar policies.
DUCA Financial: Ensured CPC in writing that they don’t have any loans funding fossil fuel expansion. However, a note that they couldn’t guarantee they didn’t have small business loans for oil and gas services companies.
Kindred: A small Credit Union in the West-GTA area focused on ethical investing.
Meridian: A credit union with 90 branches across Ontario. They are currently developing a fossil fuel financing exclusion policy.
In British Columbia
Vancity: Has very strong environmental policies and no loans to fossil fuel companies. They are very vocal about climate issues and their mutual funds are fossil-free.
Coast Capital: Based out of BC, Coast Capital is a federal credit union and operates in all provinces and territories except Quebec. They have confirmed they are not involved in the production or trade of fossil fuel or oil based utilities, ozone depleting substances, GMOs and other environmentally and socially unjust projects.
BlueShore Financial: Has confirmed they do not participate in any lending in relation to fossil fuel production, transportation or distribution. BlueShore Financial business lending is concentrated in the areas of local small business, developers, warehouse and some hospitality/tourism.
In Quebec
Laurentian Bank: Committed in December 2021 to no longer provide financing for fossil fuel exploration, development and production. A copy of their fossil fuel exclusion policy can be found here.
Personal banking branches are limited to Quebec, but business banking is provided nationally. See the National tab for their digital bank, LBC Digital.In New Bruswick
OMISTA*: A small credit union in Moncton focused on ethical investing.
In Manitoba
Assiniboine Credit Union is a small credit union in Winnipeg focused on ethical investing.
In Saskatchewan
Innovation Credit Union: Has 1.3% of its commerican loans in the fossil fuel and mining sectors, which is lower than other financial institutions in SK.
* = We need to confirm with a credit union representative whether they are invested in fossil fuel projects. A member of our team has reached out.
It could be the case that none of the aforementioned credit unions are available in your area. If this is the case please contact us! We have highlighted here the credit unions that do not currently invest in fossil fuels, but there are other options beyond these. Proportionally any credit union’s fossil fuel investments will be significantly smaller than the big 5 (they aren’t all perfect, but they’re better).
Note: Sometimes Tangerine and Simplii are suggested as banking alternatives. However, Tangerine is owned by Scotiabank and Simplii is owned by CIBC. These are not alternatives to the big bad 5. National Bank, Canadian Western Bank and ATB Financial also provide significant financing for fossil fuel expansion projects.