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Online lender releases green term deposit

Online lender releases green term deposit

UBank has unveiled an environmentally-focused term deposit that allows consumers to indirectly invest in renewable energy projects.

When consumers invest in a UBank Green Term Deposit, their money will be matched to initiatives such as wind power, solar power, low-carbon transport and low-carbon buildings.

Green Term Deposits are certified by the Climate Bonds Initiative (CBI), according to UBankFeatures include:

  • Personal and SMSF options
  • Minimum investment of $1,000
  • Term lengths of two, five, seven, eight, ten and eleven months

At the end of the term, investors can qualify for a loyalty bonus of 0.10 percentage points if they roll over the entire amount (assuming they haven’t made any withdrawals during the term).

Here’s how much you would earn with a $10,000 investment in a UBank Green Term Deposit:

TermInterest rate (without bonus)Final payout
2 months2.10% p.a.$10,035
5 months2.60% p.a.$10,108.33
7 months2.65% p.a.$10,155.58
8 months2.65% p.a.$10,176.67
10 months2.65% p.a.$10,220.83
11 months2.65% p.a.$10,242.92

UBank chief executive Lee Hatton said UBank wanted to “dispel the myth” that sustainable investments provide undesirable returns.

“Australians are becoming increasingly aware of their ecological footprint and demanding more choice into how their investments impact it,” he said.

“It’s the first CBI-certified product of its kind in the retail space globally, and another example of how our innovative team is redefining banking for our customers.”

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This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.



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