Ethical investing on your mind? Here are 5 banks where your money isn’t invested in fossil fuels
With Australians having experienced unpredictable weather in recent times, the future of the planet has never been a more relevant topic.
In fact, according to a 2023 report by the Clean Energy Australia Council (CEAC) around 1 in 3 Australians households have rooftop solar PV systems installed, with 310,352 installations made throughout 2022.
It appears that many are now turning away from environmentally damaging projects, including fossil fuels and logging, and are instead expecting their savings to be used for more ethical investments and greener alternatives.
Millennials and Gen Z most likely to be swayed by ethical investments
Based on data from ASX’s 2023 Australian Investor Report, Aussies aged 18 to 49 appear more interested in avoiding the investment of their savings into companies or endeavours that are harmful - both socially, and environmentally, compared to other age groups.
Additionally, a 2022 survey conducted by the Responsible Investment Association of Australia (RIAA) showed that more than 1,000 Aussies, 71% of Millennials and 73% of Gen Z said they would be willing to save and invest if they knew their money would have a positive impact on the planet. In fact, many listed the recent bushfires and flooding as their number one reason for wanting to switch.
So why aren’t more people divesting you might ask? Well it would seem that a lack of readily available information is the main reason that many have as yet not aligned their banking with their values.
If you’ve been thinking about switching but don’t know where to begin, here are 5 savings accounts that, according to environmental campaigner Market Forces, won’t invest your rainy day fund in fossil fuel projects.
Eco-friendly savings accounts
Bendigo Bank - Reward Saver
Enjoy earning interest on your savings while going green with Bendigo Bank. Its Reward Saver savings account lets you earn interest of up to 5.25% p.a. if you meet eligibility requirements such as holding an eligible transaction account, and ensuring your balance goes up each month by depositing more than you withdraw (T&Cs apply). Bear in mind though that if you don’t meet these conditions, your base rate will revert to 0.30% p.a.
IMB Bank - Reward Saver
- No monthly fees
- 4-month introductory bonus rate of 5.25% p.a., then 3.25% p.a. (T&Cs apply)
- Unlimited phone, internet & over the counter transactions
Receive a fixed bonus rate of 2.00% p.a. for your first 4 interest payments with IMB Bank’s Reward Saver when you save any amount up to $1 million and are eligible. Savers might also enjoy the variable bonus rate of 3.25% p.a. by meeting conditions, including depositing $50 while making no withdrawals each calendar month. Just remember that if you haven’t met the bonus interest criteria for the calendar month, you could miss out on the variable bonus rate and introductory bonus rate. Additionally, keep in mind that your interest rate will return to 3.25% p.a. after the 4-month introductory period concludes, and while there are no monthly fees, over the counter transaction fees apply.
MyState Bank - Bonus Saver Account
- ^2023 Mozo Experts Choice Award winner in the High Interest Savings account category
- Earn up to 5.00% p.a. (T&Cs apply)
- No monthly fees
MyState Bank’s Bonus Saver Account is an award-winner in the ^2023 Mozo Experts Choice Award for its High Interest Savings account. It has no monthly fees and savers can earn interest at a maximum rate of $5.00% p.a. on balances up to $250,000. To be eligible, you’ll have to meet conditions, including depositing $20 in your Bonus Saver account each month while making 5 eligible transactions from your linked Glide account every month.
Up - Saver account
- Special rate of 4.35% p.a. (T&Cs apply)
- Tools to help with organising your finances
- Optional roundup feature
With Up Bank’s Saver account, savers can take advantage of the 4.35% p.a. special rate by making 5 card purchases each month through their linked Up Everyday Account for balances up to $1 million. This eco-friendly bank also has a tonne of online banking features and an app that gives you the option to create multiple Saver Accounts to help you get your finances sorted. But bear in mind that if you’re not eligible for this special rate, a 0.00% interest rate applies.
Bank of Queensland - Smart Saver Account
- ^2023 Mozo Experts Choice Award winner in the High Interest Savings account category
- Earn up to 5.00% p.a. interest on balances up to $250,000
- No monthly fees
Bank of Queensland is a multi-award winning bank in the ^2023 Mozo Experts Choice Award, with its Smart Saver Account winning in the High Interest Savings account category. Available to customers 36 years or older, savers can enjoy the full interest rate by making minimum monthly deposits of $1,000 into a linked everyday account from an external source (such as your salary), while making at least 5 eligible transactions each month. Note that if you don’t meet the eligibility criteria, your interest rate will revert to 0.05% p.a. for a particular month.
If you are looking for some additional ethical banking options, check out our ethical banking feature story. Or if you’d like to compare these savings accounts with others in our database, head to our savings accounts hub for more options.
^The Mozo Experts Choice Awards are conducted yearly in effort to highlight leading banking products available on the Australian market. For these awards Mozo’s team of data experts compare and analyse hundreds of products including savings accounts, home loans and insurance to determine which ones really are working hard for everyday Aussies.
^See information about the Mozo Experts Choice Savings Account Awards
^See information about the Mozo Experts Choice Savings Account Awards
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