Climate First Bank Review: Is It a Good Fossil Free Bank?
Large banks continue to be big lenders to the fossil fuel industry. Despite the 2015 Paris Agreement, fossil fuel financing is up versus five years ago. However, more startup banks are promising not to finance oil and gas extraction. Climate First Bank is one such lender.
SustainFi Updated August 11th, 2021
Rating: Good (3.2 / 5)
✅ Pros
- A carbon-neutral bank that doesn’t invest in fossil fuels
- Solar and electric/hybrid vehicle loans offered
❎ Cons
- Very low APYs
- No interest on the no-fee checking account
- Few branches
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Summary
| Credentials | B Corp (pending), GABV |
| Impact areas | Climate change |
| Minimum balance | $0 |
| Account maintenance fees | • Checking: $0 • Interest Checking: $15 / month (waived with a daily minimum balance of $2,500) • Savings: $5 / month (waived with a daily minimum balance of $200) • Money market: $15 / month (waived with a daily minimum balance of $5,000) |
| APY | • Checking: none • Interest checking: up to 0.15% • Savings: up to 0.10% • Money market: up to 0.30% |
| ATMs | Over 38,000 locations |
| App | Apple Store Rating: 5 / 5 (2 reviews) |
| Accounts offered | • Checking and savings accounts • Money market accounts • Health savings accounts • Certificates of deposit • IRAs |
| Locations | 2 branches in Florida |
What is Climate First Bank?
Climate First Bank is a newly launched bank focusing on environmental sustainability. Based in St Petersburg, Florida, the bank is a member of the GABV and is waiting to be certified as a B Corp.
Climate First has committed to being carbon neutral and never investing in oil and gas extraction. As part of its climate mission, Climate First offers auto loans for electric and hybrid vehicles as well as solar loans.
The bank is led by veteran banker Ken LaRoe, who previously launched and sold First Green Bank, also in Florida.
Climate First offers checking and savings accounts, money markets accounts, certificates of deposits, and IRAs. Any account will also give you access to Climate First’s budgeting tools.
Climate First Checking Account
- No minimum balance
- No monthly service fee
- Doesn’t pay interest
- E-statements required or $5 for paper statement
- Access to the Presto and Moneypass ATM networks (over 38,000 ATMs nationwide)
The basic checking account doesn’t pay interest, but there is no minimum balance requirement or a monthly service fee.
The checking account comes with a debit card with access to the Presto and Moneypass ATM networks. You also get access to mobile banking, including check deposits, through the app. (The app is rated 5 out of 5 in the Apple Store, but with only two ratings.)
Compare socially responsible bank accounts
 |  | |
Green bank that doesn't fund fossil fuels | Responsible bank that supports local communities | A green bank funding clean energy projects |
Monthly fee Pay What Is Fair | Monthly fee $0 | Monthly fee $0 |
APY Up to 5.0% | APY 1.01% | APY Up to 5.0% |
Climate First Interest Checking Account
- $15 monthly fee, waived with a daily minimum balance of $2,500
- Up to 0.15% APY
- E-statements required or $5 for paper statement
- Access to the Presto and Moneypass ATM networks (over 38,000 ATMs nationwide)
- Free checks
The interest checking account is similar to the checking account, except for interest and a monthly service fee if you have less than $2,500 deposited. The account does pay interest, but the rate is very low. (Compare it to up to 5% APY you can get from Aspiration, a fossil free neobank.)
| Average Account Balance | APY |
|---|---|
| $5,000-$99,999 | 0.05% |
| $100,000-$249,999 | 0.10% |
| > $250,000 | 0.15% |
Accurate as of 8/3/2021
Climate First Savings Account
- $5 monthly service fee, waived with a daily minimum balance of $200
- Up to 0.10% APY
- E-statements required or $5 for paper statement
The savings account pays interest, but the rates are, again, very low. You can get a much higher rate from other socially responsible or fossil free banks, including up to 5% from Aspiration.
| Average Account Balance | APY |
|---|---|
| < $49,999 | 0.05% |
| > $50,000 | 0.10% |
Accurate as of 8/3/2021
Climate First Money Market Account
- $15 monthly service fee, waived with daily minimum balance of $5,000
- Up to 0.30% APY
- E-statements required or $5 for paper statement
The money market account pays up to 0.30% APY. The $15 / month service fee is waived with a minimum balance of $5,000.
| Average Account Balance | APY |
|---|---|
| $5,000-$49,999 | 0.05% |
| $50,000-$99,999 | 0.10% |
| $100,000-$249,999 | 0.20% |
| > $250,000 | 0.30% |
Accurate as of 8/3/2021
Compare socially responsible bank accounts
| | | |
Green bank that doesn't fund fossil fuels | Responsible bank that supports local communities | A green bank funding clean energy projects |
Monthly fee Pay What Is Fair | Monthly fee $0 | Monthly fee $0 |
APY Up to 5.0% | APY 1.01% | APY Up to 5.0% |
Is Climate First Bank safe? Are deposits FDIC-insured?
Climate First Bank is a bank that has been approved by the FDIC. All accounts are FDIC-insured for up to $250,000.
💰 Takeaway
- Climate First Bank is green banking alternative aimed at Florida residents
- The bank is carbon-neutral and won’t fund fossil fuels
- However, APYs are very low and more comparable to traditional banks. You can get much higher rates from green neobanks Aspiration or Ando Money
Climate First Bank vs. Aspiration
If you are looking for a fossil free bank with extra features and higher rates, Aspiration is a good option. Aspiration is currently offering up to 5% APY, a highly rated mobile app, and perks like rounding your change to plant trees. Read the review here.
Other fossil free options include Amalgamated Bank, ATMOS Financial, and Ando Money.
🔔 Interested in other sustainable bank accounts? Check out our banking guide.
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