NS&I Green Saving Bond doubles this week by increasing the percentage rate you will earn.
The initial launch of the NS&I Green Saving Bond from National Savings & Investments (NS&I) In October last year was met with criticism about the poor rate of return on offer.
The rate has now increased to 3.0%, meaning the NS&I Green Saving Bond Doubles what NS&I previously offered to savers.
While the new interest rate remains below the most competitive for a three-year fixed-rate savings bond, the more attractive interest rate and the green credentials of the Bonds are likely to attract more savers.
Although with rising interest rates, the question of locking up cash for 3 years is always going to be questioned.
Terms of the new NS&I Green Savings Bond:
- It pays 3.00% Gross after 3 years
- You will have no access during the 3 year period.
- Minimum investment is £100
- Maximum investment is £100,000
Net Zero by 2050 is the Governments target and is now set in law and requires the UK to reduce its greenhouse gas emissions to net zero by 2050.
So where will your money be invested:
All money invested in NS&I is passed onto HM Treasury and contributes towards government spending.
Money invested in Green Savings Bonds will also go to HM Treasury and be held in a general account.
HM Treasury then plans to allocate an amount equivalent to the proceeds raised from Green Savings Bonds, to its chosen green projects, within two years, such as:
- Making transport cleaner
- Renewable energy over fossil fuels
- Preventing pollution
- Using energy in a more efficient way
- Protecting natural resources
- Adapting to a changing climate
NS&I Chief Executive, Ian Ackerley, said: “NS&I is one of the largest savings organisations in the UK and we’re pleased to increase our interest rates, helping to ensure that more than 1.3 million savers across the country will see their savings nest eggs boosted.
“Increasing our interest rates means that our products are priced appropriately when compared with the interest rates offered by our competitors.”
Despite the increase and the safe nature of NS&I it is important to be aware of the effects of locking cash away with rising inflation.