UBank launches world’s first green term deposit

Alison Banney 14 March 2019 NEWS

Money invested in the UBank Green Term Deposit supports green energy projects such as solar, wind and marine energy, and low carbon buildings.

UBank has today launched the UBank Green Term Deposit, which is the world's first green term deposit and certified by the Climate Bonds Initiative. The money deposited in the UBank Green Term Deposit is exclusively used to support a range of renewable energy projects and initiatives.

The UBank Green Term Deposit invests in a range of green bonds. The Climate Bonds Initiative is a not-for profit that has developed a standard for investments which address climate change, and only gives its tick of approval to bond investments that truly contribute to addressing climate change.

The new term deposit works in the same way as a standard term deposit by locking a customer's funds away for a set period of time and offering a fixed interest rate in return. Customers who open this new term deposit have the opportunity to invest their money in green energy without compromising their returns. The Green Term Deposit offers the same interest rates as its standard term deposit product, but with slightly varying term lengths.

UBank's standard term deposit offers 1, 3, 4, 6, 9 and 12 month term lengths, with terms over 6 months offering a fixed interest rate of 2.65% p.a. The Green Term Deposit offers 2, 5, 7, 8, 10 and 11 month term lengths to choose between, with all terms 7 months and over offering the same 2.65% p.a. fixed rate. In line with the standard term deposit the Green Term Deposit also offers a loyalty bonus of an extra 0.10% p.a. on top of the advertised rate for customers who choose to roll over their term deposit into a new one after it reaches maturity.

Research commissioned by UBank revealed 74% of Australians consider themselves to be eco-friendly, and more than half of millennials are actively looking to incorporate sustainable products in their daily lives.

"Australians are becoming increasingly aware of their eco-footprint and demanding more choice into how their investments impact it. Designed for those who 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," said UBank CEO Lee Hatton.

Both personal customers and SMSFs can open the new Green Term Deposit from today. There are no set up or ongoing account keeping fees, and the minimum deposit requirement is $1,000.

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