Good news to all environmentally conscious readers.  You can now stick depositing money right next to recycling your junk, using biodegradable glass cleaner or riding your bike.  With the increasing need and awareness, many financial institutions are searching for ways to handle their business in a more socially or ecologically responsible manner.  Whether this stems from a genuine concern for the sustainability of our planet, or just an attempt to pull in more customers, any little bit can help.  Environmental initiatives are springing up in the most unexpected of places recently and there is no reason why they can’t be included in the day to day task of handling your finances.  Here are a few questions to keep in mind if you decide to go green.

Where do I Bank?
It is a sunny, Wednesday afternoon and instead of enjoying a relaxing lunch on a patio somewhere, you are stuck in a line-up at some dim, dreary bank and the elderly man in front of you has decided to strike up an elaborate conversation with the only available teller about his garden of petunias.  This alone is an excellent reason to bank online, although there are other, better reasons.

Online banking is perhaps the most obvious initiative of the bunch.  Cutting down on bills, statements and notifications that are sent out reduces the amount of paper, ink and gas that is used up to create and deliver them.  On a larger scale, this can help preserve natural resources and reduce harmful emissions.  Many people still hesitate to move something as personal and important as banking to the precarious realm of the web.  There are however different precautions and safety features that institutions apply to make internet banking more secure.

How is my Money Being Used?
Online banking is highly advocated by institutions- it does after all, save them on operating costs- and is therefore most widely associated with green banking.  It is, though, only the tip of the iceberg.  If your investment, for example, is being used to fund a massive deforestation project, it makes little sense to spare a few trees by paying a bill online.  This is why it is important to pay attention to where your money is going.

While green banks operate in the same way as any other financial institution, they are pickier about the social or environmental aims of the causes or projects they support.  When you keep a large chunk of money in a savings account, the bank loans this money to corporations, while charging an interest rate that is substantially higher than what they offer you.  As a result, it is worth asking how your money is being used. 

You may be surprised to find that while many banks claim to be ethical or environmentally conscious, their investing and loaning practices do not reflect this.  Look for banks that help finance eco-friendly projects and initiatives or ones that are associated with ethical or social movements.  Institutions that also support community causes and charities are worth supporting with your business.