Ethical investing on your mind? Here’s 5 savings accounts where your money isn’t invested in fossil fuels

Ethical investing on your mind here s 5 savings accounts where your money isn t invested in fossil fuels content

Article updated on 11 September 2020.

With Australians still healing from the worst recorded bushfire season and now the entire world thrown into a health crisis, investing in the welfare of everyone and the future of the planet has never been a more relevant topic.

In fact, according to a report by the Responsible Investment Association of Australasia (RIAA) a significant 86% of Australians now expect their savings to be used for more ethical investments. The study revealed that more than two thirds of the nation do not want their money to fund environmentally damaging projects, including fossil fuels and logging.

Millennials and Gen Z most likely to be swayed by ethical investments

Of the over 1,000 Aussies surveyed, 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 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:

Up Saver Account
  • 1.60% p.a. maximum interest rate

  • 2020 Everyday and Savings Bank of the Year^

  • $5 bonus when you use MOZO5 at sign up

Not only was Up Bank the winner of the Everyday & Savings Bank of the Year for 2020 Award^, but according to Market Forces it also does not invest in fossil fuels. On Market Forces' website it says, “Deposits provided through the Up apps are held by Bendigo and Adelaide Bank. Bendigo Bank does not currently lend to and has no plans to lend to projects in the coal and coal seam gas sectors.” 

The maximum interest rate, 1.60% p.a,. can be earned on balances up to $50,000. This is available for the first four months as a special rate, but you can still earn it after that, so long as you make at least five successful card purchases each month, through your linked Up Everyday Account.

MyState Bank Bonus Saver Account
MyState Bank
  • 2020 Mozo Experts Choice Award winner^

  • 1.65% p.a. maximum ongoing rate

  • No monthly account keeping fees

As well as scooping up a 2020 Mozo Experts Choice Award for best Regular Saver^, with a MyState Bank Bonus Saver Account you can be easy in the knowledge that your rainy day fund won’t be used to support fossil fuel projects. A statement from the bank reads: ‘As a company that is committed to a sustainable community, MyState does not directly invest in any coal, gas or oil projects.’ You just have to make sure you deposit at least $20 into your Bonus Saver and make five Visa Debit card transactions from your MyState Bank Everyday Account each month to earn the 1.50% p.a. bonus interest.

Suncorp Growth Saver Account
  • 1.35% p.a. maximum ongoing interest rate

  • No account keeping fees

  • Unlimited phone and internet transactions

According to Market Forces, Suncorp had investments in the industry more than a decade ago, but has since released a statement saying that it no longer funds fossil fuel projects. The Growth Saver account comes with a standard base rate of 0.10% p.a. and an ongoing bonus rate of 1.25% p.a. To get the  competitive maximum ongoing 1.90% annual rate you need to deposit $200 into your account and make no more than one withdrawal each month.

Great Southern Bank eSaver Reward
Great Southern Bank
  • 1.45% p.a. full ongoing interest rate

  • No monthly account keeping fees

  • Set up an automatic transfer from your everyday account

If you’re after the peace of mind that comes with knowing that your money isn’t fuelling environmental degradation, then you might be interested in checking out CUA’s eSaver Reward account. Not only does this account come with a competitive maximum ongoing rate of 1.45% p.a., according to a statement from the credit union it does not directly finance the coal and gas sector and does not lend directly to companies within those sectors. To earn the  bonus interest, you need to make sure you deposit at least $1,000 per month into your linked CUA Everyday Account.

Rabobank High Interest Savings Account
  • 2.00% p.a. 4 month introductory rate

  • 2020 Mozo Experts Choice Award winner^

  • No account fees

With a focus on food and agriculture, you can be rest assured that Rabobank does not invest in fossil fuels. In a statement the bank wrote: ‘Rabobank Australia & New Zealand does not finance the primary production of fossil fuels and has communicated in a number of cases our concerns about exploring unconventional fuels such as CSG, Shale Gas and Tar Sands.’ On top of all that, the bank also received a 2020 Mozo Experts Choice Award in the Kick Start Savings category for its High Interest Savings Account! The account comes with a competitive, 4 month introductory rate of 2.00% p.a., which you can earn on balances up to $250,000. After the introductory period is up the rate will revert to a standard variable rate of 0.55% p.a.

^See information about the Mozo Experts Choice Savings accounts Awards

If you are looking for some additional ethical banking options see our ethical banking story or 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.