National Savings To Launch Green Savings Bond

NS&I will be launching a new Green Savings Bond later this year, as previously announced by the Chancellor in the 2021 budget.

The bond will be available online and will be at a fixed rate over 3 years and money invested in the bond will help finance green projects chosen by the Government.

The bonds will be available for people over 16 and have a minimum investment of £100 and a maximum limit of £100,000 per person.

The Green Savings Bonds will help finance the Governments green spending projects and will include projects designed to tackle climate change including using renewable energy over fossil fuels, preventing pollution, making greener transport, protecting natural resources, and adapting to a changing climate.

NS&I will publish later in the year further details on the new Green Savings Bond including the interest rate.

NS&I Chief Executive Ian Ackerley, said “The new bond will be available to purchase online later this year and savers will have the opportunity to contribute towards the Governments UK’s Green agenda and projects to make a greener cleaner and more sustainable world”.

The Bonds Key Features are:

• The bond is available to buy and manage online at nsandi.com.
• The bond is available to savers aged 16 and over.
• 3-year fixed term.
• Designed to be held for the whole term but has a cooling off period in the first 30 days of investment.
• Minimum investment limit of £100.  Maximum investment of £100,000 and can be made individually or jointly.
• Savers must have a UK bank account and be capable of receiving BACS payments.
• Guaranteed fixed rate for the whole of the term.  Interest is earned daily and added once a year on the investments anniversary and paid on maturity.
• Interest is earned without deducting any tax at source.  However, the interest is taxable so it will count towards the customers Personal Savings Allowance in the tax year that their bond matures and needs to be declared by the individual based on their personal tax circumstances.

Comment

The push to a climate neutral environment is already upon us and NS&I is the first, government backed, green investment initiative.  Expact many more to follow.