The financially-savvy and environmentally-minded among us have reason to be happy this week. UBank has just introduced its new Green Term Deposit, giving Australians a chance to grow their savings while making a positive impact on the environment at the same time.
What makes it green? When you lock away your funds, an equal amount will be set aside to support various green initiatives, such as wind and solar energy, and development of low carbon buildings and transport.
It’s also certified by the Climate Bonds Initiative (CBI), an organisation working to promote the transition to a sustainable global economy. The CBI only grants certification to projects and assets which can reliably show they’re addressing climate change, so savers can be confident that this one does what it says on the tin.
What does the Green Term Deposit offer?
The Green Term Deposit is available for both personal and self-managed super fund term deposits. Terms of 2, 5, 7, 8, 10 or 11 months are available, and savers can expect returns of at least 2.60% p.a. for a majority of options. Here’s a run-down of the rates on offer:
- 2 month rate: 2.10% p.a.
- 5 month rate: 2.60% p.a.
- 7 month rate: 2.65% p.a.
- 8 month rate: 2.65% p.a.
- 10 month rate: 2.65% p.a.
- 11 month rate: 2.65% p.a.
And as an incentive to renew the term deposit, loyal customers will be rewarded with an additional 0.10% p.a., putting it on par with a number of non-green alternatives.
“We’re hoping to dispel the myth that sustainable products provide a less than desirable financial outcome,” said UBank CEO, Lee Hatton.
“Our Green Term Deposit has been designed for our customers to deliver strong returns, with zero ongoing fees, and will help contribute to a low carbon economy.”
A growing number of Australians consider sustainability a main concern
UBank’s latest move comes as part of a broader effort by the bank to listen to its customers - half of which are millennials - and get an idea of where their values lie.
Its latest findings suggest that more Australians are concerned about the environment than ever. 74% of Australians consider themselves eco-friendly and try to incorporate sustainable practices in their daily lives.
Millennials in particular have made sustainability a core issue, with nearly 55% keeping an eye out for sustainable products.
“Australians are becoming increasingly aware of their eco-footprint and demanding more choice into how their investments impact it,” Hatton said.
So if UBank’s Green Term Deposit sounds like the right fit for you, check out our review for more information. And if you want to keep the ethical streak going, be sure to check out our list of ethical banks and products.