Aussies urged to put savings into social projects

The government of New South Wales is to encourage Australians to put money into non-government social programs aimed at providing benefits to both savers and the community.

Due to get underway next year, the trial will see the government offer "Social Impact Bonds" to private investors, the AAP reported.

NSW Premier Kristina Keneally said that the bonds, which are similar to a public-private sector partnership investment, will aim to unlock funds to tackle social issues in the state through community, financial and government sectors.

Investors will receive a return on their investment where programs meet agreed targets and deliver public sector savings. The scheme means that NSW will be the first Australian state to trial social impact bonds.

"There has already been strong interest from the investor community about this scheme – responding to a growing view they would like to invest in social programs, while also receiving a good return," said Ms Keneally.

Earlier this week, meanwhile, Sydney Morning Herald finance writer John Collett urged savers to compare term deposits and consider their options carefully after noting that interest rates on such products have reached their highest levels for at least two years.

This article is brought to you by Mozo – Helping you compare term depositsADNFCR-1761-ID-800257156-ADNFCR