Waste Down, Interest Rates Up with 'Eco Term Deposits'

Tsuruga Shinkin Bank, a local credit union in Japan's Fukui Prefecture, had accepted deposits for its sixth "Eco Term Deposit" under the condition that its interest rate will rise in accordance with the reduction in the amount garbage production in the community. The one-year term deposit was available for companies and individuals that were able to deposit between 100,000 and 3,000,000 yen (about U.S.$950 and $28,570, respectively) from December 1, 2007 through May 31, 2008.

The bank applied an interest rate that was 0.1 percent higher than the advertised rate. In addition, the total amount of combustible garbage generated in the bank-specified areas of Tsuruga and Wakasa Cities, and Mihama town, will be compared to the amount produced in the previous year. If the amount of garbage is reduced, the interest rate will increase depending on the decrease. For a reduction of 1 ton or more, the bank will add 0.05 percent. For reductions of 100 tons or more, 200 tons or more and 500 tons or more, the bank will raise the rate by 0.1 percent, 0.2 percent and 0.3 percent, respectively.

The bank will compare the amount of garbage produced between October 2006 and September 2007 to the amount produced in the previous 12 months, and will announce the interest rate this year on November 17, 2008. For the fifth "Eco Term Deposit," the three municipalities had increased their garbage production by 508 tons, so the interest rate was not raised and the advertised rate was applied.


- 'Eco Term Deposit' Interest Rate Depends on Community's Waste Reduction Results (Related JFS article)
http://www.japanfs.org/db/995-e

Posted: 2008/10/26 12:47:27 PM