The green term deposit from UBank is matched to a portfolio of renewable energy projects such as solar, wind power and low carbon transport and buildings. It comes on the same day as thousands of Australian school kids strike over the governments inaction on climate change.
It will allow customers to use the savings in their term deposits to support a positive environmental impact, while still enjoying a high return.
The deposit as been certified by the climate bonds initiative, a not-for profit that has developed a standard for investments which address climate change.
When a customer invests funds in the deposit, National Australia Bank – the licensee of UBank – has committed to holding an equal amount in a pool of lending for projects and assets eligible for certification under the climate bonds standards.
UBank chief executive Lee Hatton said that social and environmental consciousness was at an all-time high and customers wanted their money managed in a way that reflected their values.
“Australians are becoming increasingly aware of their eco-footprint and demanding more choice into how their investments impact it.
“Designed for those want to drive a positive environmental impact while still having a competitive rate, we’re thrilled to be delivering green term deposits for our customers. It’s the first CBI certified product of its kind in the consumer space globally and another example of how our innovative team is reimagining banking for our customers,” Mr Hatton said.
Research has found that 55 per cent of Millennials are actively looking to incorporate sustainable products in their lives while three in five Australians are aware of sustainable financial products in the market.
Mr Hatton said the deposit was designed to generate returns in order “to dispel the myth that sustainable products provide a less than desirable financial outcome.
“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.”
Eliot Hastie is a journalist on the wealth titles at Momentum Media.
Eliot joined the team in 2018 having previously written on Real Estate Business with Momentum Media as well.
Eliot graduated from the University of Westminster, UK with a Bachelor of Arts (Journalism).
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