When you deposit your money into a bank account, the money doesn’t just sit there. Your bank uses the money to make loans. Those loans may align with your values — or not.

Banks make loans based on how much money in total is deposited in the bank — so your money can be lent out to other people and businesses.

When those borrowers repay their loans, they also pay interest to the bank.

Meanwhile, the bank pays you interest for the using the money from your savings account.

The bank stays in business because it pays less in interest to you than it got from its borrowers.

Banks are not all alike

Different types of banks make different types of loans. Large megabanks — household names like JPMorgan Chase, Citibank, Bank of America, and Wells Fargo — exist to make loans to large corporations, including fossil fuels, factory farms, and other industries that harm communities.

Local community development banks and credit unions serve regular people, mostly for mortgage and car loans and small business loans. They also make loans to support affordable housing, green spaces, health care centers, and schools.

Learn more here about how to get a better bank or credit union.