Printer friendly version

The Problem

Since the signing of the Paris Climate Accords in 2015, four Big Banks, Bank of America, Chase, Citi & Wells Fargo have loaned over $1.45 trillion to the fossil fuel industry, $135 Billion in 2023 alone!  These banks, and many others, are literally funding climate chaos, placing our future at risk.

The Solution

Money talks! Thousands around the country are preparing to open new checking, savings and credit card accounts so that their money won’t be used to fund climate chaos.  Third Act Michigan is legally prohibited from offering financial or investment advice but we offer this information from the perspective of which banks help support the expansion and entrenchment of fossil fuel extraction.

Credit Unions That Don’t Finance Fossil Fuels

What is a credit union and how is it different from a bank?

These not-for-profit, member-owned equivalents to banks emphasize personalized support and typically pay higher interest rates than banks. To use a credit union, you must become a member, sometimes paying a small, one-time membership fee and opening an account with a small deposit. Credit unions can’t invest in stocks, and can only make loans to members, so it is unlikely that any invest in fossil fuels.  They are federally insured like banks and savings & loans, but by different agencies up to $250k.

Other Banking Choices

There are 4 major banks headquartered in Michigan, but only 1 is not a major funder of climate chaos.  There are numerous small community banks as well as several regional banks, headquartered in midwest states.  It is important to balance your values, priorities, and needs in banking, and consider if you need a building to enter vs mobile banking only. We recommend some from each category, including 1 national, but there are many more.  So, we offer you a way to check for what you need in a bank or credit union that includes some social values in addition to fossil free that might be important.  Now is the time to put your money where your mouth, and especially your heart are!

Credit Cards That Don’t Finance Fossil Fuels

Many small banks, credit unions, groups and businesses (such as Costco or Meijer) have credit cards branded in their names on the front of the card, but these cards are issued by another institution (such as Citi). You can usually see who the issuer is on the back of the card, or the fine print in the application. Issuing banks are typically also distinct from the card companies who process the payments (usually Visa, MasterCard, American Express or Discover).  Here is a detailed explanation.

To avoid supporting fossil fuel investment, make sure that the issuing bank is not one of the 4 Big Banks above, Elan Financial, US Bank or UMB Bank. Good choices in Michigan include cards from many of the above banks or LMCU (other*credit unions use “Co-op” an unknown), as well as The Green America Visa, issued by TCM Bank.

Please note: there are very few, if any, totally green financial institutions. Hopefully that will change as our movement grows. In the meantime, each person must decide what is personally “green enough” for them.

Steps to Change Your Bank and Credit Cards

1. Sign The Pledge!  That link will also take you to resources to help you move your money.  This helps Third Act keep track of the # of actions taken.

2. Choose a climate-friendly bank and/or credit card using this guide or other resources listed.  Make a short list of banks for further research, if you like.

                      A. THIS! Climate-Friendlier Institutions Info Sheet

                   B. Third Act Blog on better banking options (coming soon: Carolyn G, MI blog)

         C.  Special credit card considerations:  Third Act Credit Card FAQ    

3. Identify all Auto-pays and Direct Deposits with your old bank or credit card, which         could require review of up to a year of statements to be complete.

4. Open an account with your new bank! Don’t close the old until next steps complete.

5. Contact direct deposit then billing autopays to reroute to the new institution.  

6. Save important information: download or print necessary records from your old bank, such as HSA or other tax documents.

7. Close out account(s) in the climate-bad bank.

        A.  Write a personal or cashier’s check or electronic transfer to your new bank.

        B.  Get confirmation of the closed account in writing.

        C.  Check this Nerd Wallet 6 step guide to close your credit card.

8. Write to the climate-bad bank CEO and Branch manager explaining why you are closing your account.  Use this template, but tailor it to your specifics (Is your bank in the top 5? 60? Only moderately bad?).  If we all do this, maybe they will change!

9.  Promote on your networks and social media!  You can also tell Third Act!

10. Feel good about yourself! And consider further changes you may want to make.  Green America has multiple resources for checking banks, credit cards, investing, and insurance companies.  

*  Bank.green is a volunteer run site to check if banks are funding climate chaos.  If the bank you want to check isn’t listed, they can check it out for you for a $15-$20 donation.