Green fixed deposits: For interest of the environmentally conscious

They're at par with normal fixed deposits but not all banks offer these

By now, most investors are aware of ESG (environmental, social and governance based) funds offered by mutual fund houses. However, not many are aware that a similar, environment-friendly option, exists on the fixed-income side as well in the form of green fixed deposits (FDs). Among those offering such deposits are HDFC, Union Bank and IndusInd Bank. DBS Bank India also launched these deposits about a fortnight ago.

What are green FDs?

ESG mutual funds buy stocks of companies that run sustainable businesses. Similarly, many lenders, too, want to fund businesses and projects that score high on sustainability. Their goal is