Does it pay to be green?

The BP oil spill in the Gulf of Mexico has already been hailed the worst environmental disaster in US history, once again bringing green issues to the forefront of people's minds.

Ethically minded customers like to incorporate their principles into their financial decisions, but opting for green deals could leave them out of pocket.

Michelle Slade, spokesperson for Moneyfacts.co.uk commented: "Ethical investing is a lifestyle choice, where rate and performance is not the overriding factor.

"Consumers are paying a premium for sticking to their principles.

"Only a handful of providers in the cash savings and mortgage market offer ethical products, meaning customers will have to work harder to seek the best deals out.

"Larger providers such as The Co-operative Bank do manage to combine competitive rates with an ethical stance.

"Ethical investors have a wide choice of funds into which they can invest, which can be used as part of a stocks and shares ISA.

"While ethical investors have had to endure periods of underperformance, over the last year they have performed more successfully than their non-ethical counterparts.

"Ethical investing is likely to remain a niche market unless it does more to attract the mainstream market."