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Catherine had never thought about opening a term deposit to grow her savings, until she saw an email about Bank Australia’s Impact Term Deposit pilot.
“I never thought I would have a term deposit, because I just assumed – oh, you need fifty thousand dollars for that! But then I saw I could participate in the pilot with just $500 and it really changed my thinking.”
Between October 2022 to February 2023, we piloted a new Impact Term Deposit that matched $29.7 million in customer deposits with an equal amount of loans across our impact lending portfolio. This means customers’ money directly contributed to financing a range of social and environmental asset categories, including Clean Energy Home Loans, and loans into the community and specialist disability housing sectors.
Affordable housing is a priority for Catherine, and she is pleased Bank Australia’s impact lending invests in expanding the availability of affordable homes. Saving to become a first home buyer is one of her own financial goals, and having an Impact Term Deposit has been a great way for Catherine to see her savings growing each month.
“All my life, my money has gone on books, music and travel – but now is a good time to start saving for a home, and I feel I’m in control of my financial security.”
A strong appeal of the Impact Term Deposit was knowing that while her savings were accruing a higher interest rate for six months, they were also contributing to someone else’s needs.
“I just thought –imagine if everyone contributed $500? Imagine what we could do!”
Catherine is active in her community, contributing as a volunteer and advocate for equal rights for refugees and other recent migrants, teaching English to a Somali family and helping international students apply for permanent visas.
Having become a customer 2 years ago, drawn to Bank Australia’s promise of using customers’ money as a force for good, Catherine believes banks can play an important role in increasing access to affordable and secure housing.
“It feels great knowing my money is helping address issues in our community. And I’m going to keep using a term deposit because now I’ve done it, it has opened my mindset to using one to help me save.”
How we invested money from customers’ Impact Term Deposits to have a positive impact spans across social and environmental priorities. This includes:
- home ownership for 16households on low to middle incomes
- a school renovation that benefitted up to 60 students
- specialist disability accommodation for 33 people
- home loans for 49 energy efficient homes
You can read more about the outcomes of the Bank Australia Impact Term Deposit pilot here.
