- Green savings bonds giving savers across the UK the chance to back the Government’s environmental projects are being made available to take out online
- Savers aged 16 or over can take out the bonds, which pay a fixed annual rate of 0.65% over a three-year term, via Treasury-backed savings provider NS&I’s website
- The bonds, unveiled in the spring 2021 budget, will be on sale for a minimum period of three months, NS&I said. The minimum investment is £100 with a maximum limit of £100,000 per person
Personal finance expert, Kevin Mountford, assess whether the green bonds have what it takes to really help investors overhaul their carbon footprint in the run-up to Cop26 or whether they are destined to be a green wash-out.
“Whilst there is a clear sentiment towards green-related issues, the rates offered by NS&I are very disappointing vs those available in the wider market.”
“As an example, Raisin is currently offering an exclusive 3-year product paying 1.75% per annum so more than double the rate that you can earn from the ‘Green Savings Bond’! However, it will be good to see how the money deposited into the NS&I products will be used to really drive the green agenda.
“The 100% protection offered to savers via NS&I is also attractive however based on the research quoted, the average savings of those most interested in green issues is likely to be well within the £85k FSCS limits so the money deposited into lesser-known, regulated entities is just as safe”