It’s not something most of us think about, what our banks are doing with our money. But what would you do if you found out they were using it to fund projects that are not only harmful to the environment but are contributors to climate change?
Well, according to a survey commissioned by Social Impact, 46% of us would make the move and switch to another provider.
But the hard part is knowing which financial providers actually get the thumbs up when it comes to their green pursuits. Here at Mozo we’ve done a little digging around to uncover some of Australia’s greenest banks:
Backed by Bendigo Bank, you might not have heard of act. It’s a newish player in the banking world and has a policy of not funding any organisations involved in fossil fuels and on their website state “we make conscious decisions to reduce and offset our carbon footprint.”
Mozo’s product pick: Its Secured Personal Loan comes with a low rate of 7.79%, plus you’ll earn impact dollars each month of the loan term that you can use to fund community based projects.
2. ME Bank
You may have seen their “me, me, me” ad on the TV but this provider is more than just a catchy jingle. Not only have they taken out the title of Australia’s Best Bank in the Mozo Experts Choice Awards for delivering great value products but when it comes to their investments they steer clear of industries that negatively affect the environment like mining.
Mozo’s product pick: For those looking for a new low rate credit card, its frank Credit Card is a decent choice with a $0 annual fee and a low 11.99% purchase/ cash advance rate.
3. Bank Australia
Since 2010, Bank Australia has been carbon neutral, they also use things like solar panels and rainwater at their head office – talk about a green provider, right? So when you move your finances to them, you can be rest assured your banking isn’t hurting the environment.
Mozo’s product pick: Bank Australia has earned itself a reputation for offering some of the lowest interest rates in the home loan world. For instance, at the time of writing its Basic Home loan has a rate of just 3.73% (3.74% comparison rate) and a $0 service fee.
4. Bendigo Bank
Apart from banks that are following the path of environmentally friendly lending, there are also some providers offering a range of products, if you yourself, are doing the right thing and borrowing for carbon friendly purposes. One of these is Bendigo Bank, with a range of personal loan products with competitive rates if you tick this box.
Mozo’s product pick: The Green Personal Loan with a fixed 6.79% interest rate (7.14% comparison rate) if you’re purchasing green items like efficient appliances and solar hot water systems.
5. Victoria Teachers Mutual Bank
Like the thought of banking with a provider that puts members first? Then Victoria Teachers Mutual Bank could be just for you. Run by members and offering a range of green products, it’s a great choice for the environmentally minded borrower.
Mozo’s product pick: If you are purchasing a car with a CO2 value less than 180 g/km, then you’ll be eligible for the Green Car Loan with a super low rate of just 5.29% (5.41% comparison rate).
That was just some of the banks that are doing their part when it comes to the environment. For a full list of green providers, visit the Market Forces website which lists 120 banks, credit unions and building societies in Australia and their stance on funding fossil fuels. Or head on over the the Australian Ethical site, where you can find a table of the biggest lenders to coal and gas exports over the last 5 years.