New NS&I Green Savings Bond goes on sale to the public
Chancellor says new bond will let consumer ‘put their money to work in the fight against climate change’
National Savings and Investments (NS&I) has today launched the government’s inaugural green savings bond, providing the public with a route to invest directly in the UK’s net zero transition.
Just a day after the Treasury successfully issued its second green sovereign bond, raising £6bn for investment in low carbon projects, NS&I confirmed its new three year Green Savings Bond was now available to purchase online.
The move makes good on Chancellor Rishi Sunak’s promise at the Spring Budget that the government would launch a green bond for the public to access, alongside the Treasury’s new multi-billion pound green sovereign bond programme.
“Our world-first Green Savings Bonds give savers across the UK the chance to back the government’s green projects and put their money to work in the fight against climate change,” Sunak said in a statement. “The UK is already a world leader in green finance and these innovative new savings bonds will deliver both financial returns and environmental benefits, in a transparent and secure way.”
NS&I said the new Green Savings Bonds would be on sale for a minimum period of three months and offer a three year fixed term with an interest rate of 0.65 per cent gross/AER. The minimum investment is £100 with a maximum limit of £100,000 per person. The full amount deposited is to be held for three years and cannot be withdrawn during this time.
The proceeds from the bond will be used to help finance the government’s green spending projects, including efforts to decarbonise transport networks, expand renewable energy capacity, prevent pollution, enhance energy efficiency, protecting natural resources, and enhance climate resilience.
Ian Ackerley, NS&I chief executive, said the organisation was “proud to be offering Green Savings Bonds on behalf of the government”.
“Green Savings Bonds will offer savers the chance to contribute towards the UK’s green agenda and support six key areas to help make our environment greener, cleaner and more sustainable,” he said. “As well as helping the environment, savers will see a fixed return on their investment and will also benefit from NS&I’s 100 per cent security on all capital invested.
“Green Savings Bonds will be on sale for at least three months, giving savers ample opportunity to invest and the Bonds will be available to purchase and manage online.”
However, the planned 0.65 per cent rate of return was roundly criticised by personal finance experts, who noted that considerably more attractive rates were currently on offer across the market.
