What is a term deposit?
Fixed term deposits offer a guaranteed rate of return on your money for the life of an investment. It can be an attractive option because the interest rate is usually higher than regular savings account rates. But if you withdraw some or all of the deposit before the agreed term finishes, you may incur a penalty that is deducted from the accrued interest.
Why did we offer the Impact Term Deposit?
Our history as a credit union and now a customer-owned bank has always been one of coming together to achieve something bigger than we could individually. And we understand that caring for people and the planet is a key reason our customers bank with us.
We offered the Impact Term Deposit to our existing customers as a pilot program, with the potential to offer it more broadly and ongoing once the pilot concluded (and following an assessment of your feedback).
How was the Impact Term Deposit different to your other savings products?
All banking with us including any fixed term deposit helps create positive change, underpinned by our responsible banking policy. Our new Impact Term Deposit was the latest targeted way for you to do so, by actively supporting lending specifically for environmental and social impact.
What was expected when participating in this pilot?
With the Impact Term Deposit, we were trying something new. Some things might not be perfect as we were still building and testing it. We wanted to offer you savings products that actively align with your values and that have clear outcomes. Running this pilot helped us assess the viability of offering this option more broadly and to new customers. We wanted to know what you think of it.
So, after tjhe Impact Term Deposit, and throughout the pilot, we asked for participant feedback, usually via online surveys sent via email. We also had a feedback form where participants could provide any comments or suggestions throughout the pilot. We also included a write up of the pilot’s results in our impact report. The results would not be attributed to individuals without prior consent.
What happened when the Impact Term Deposit matured?
Once the Impact Term Deposit term ended, it was rolled over to another 6 Month Impact Term Deposit term due to the success of the pilot. At the maturity of this second term it will roll over to a regular 6 month term deposit.
What happens if I change my mind after opening the Impact Term Deposit?
If participants wanted to make a change after opening the Impact Term Deposit, there was a grace period of 14 days from the date term deposit was opened to provide alternative instructions without incurring a fee.
Is the Impact Term Deposit Framework assured by an external party?
For the pilot period, the Impact Term Deposit Framework was not subject to a third party opinion or external assurance. Bank Australia tracked the balance of Impact Term Deposits under the pilot product via its internal reporting systems, ensuring all eligible assets in the Impact Term Deposit were appropriately identified with monitoring reports provided quarterly to the Responsible Banking Committee similar to that used for Bank Australia’s sustainability bond program.