What does your bank do with your money

We’ve all deposited money with a bank, but have you ever stopped to think what the bank does with those funds?

When you deposit money with your bank, you’re essentially lending that money to them, which is how you earn interest on the balance on your savings or term deposit. Banks then use those funds in various ways, including:

to fund the loans they offer other customers

to lend to other banks when they need to boost their funds

to lend to businesses.

This could include your local grocery store or tradie, but could also include companies you may never support if given the choice.

What does this mean for you?

Some banks lend to industries that are highly profitable, but whose main business causes environmental damage. These organisations might be involved in the production of fossil fuels, military activity and producing armaments, or have unethical supply chains which mistreat workers and provide unsafe working conditions.

Being aware of what choices your bank makes when it comes to customer deposits is important. When choosing a bank, consider what values are important to you and then check that your bank aligns with them.

TMB commits to ethical policies

Teachers Mutual Bank lends money like any other bank, but with one important distinction – we have a commitment to socially responsible banking.

This means that your deposits, and the money we lend are never involved in: deforestation; fossil fuels; gambling, alcohol and tobacco; correctional facilities; weapons; political activity; and more.

Further, our ethical policies have contributed to the bank being recognised as one of the 2020 World’s Most Ethical Companies.

So, if you are a Teachers Mutual Bank member, and so many teachers and support staff and their families are, you can relax knowing the savings you’ve put away for your future aren’t funding industries that put that future in jeopardy.

The best news is, there are no extra costs to you for the peace of mind of investing responsibly.

For more information, visit tmbank.com.au/sustainability

“World’s Most Ethical Companies” and “Ethisphere” names and marks are registered trademarks of Ethisphere LLC