- NS&I to launch new Green Savings Bonds later in the year
- Bond available for a three-year term and money invested will help finance green projects chosen by the Government
- Available online at nsandi.com
NS&I will launch Green Savings Bonds, the new retail savings product announced by the Chancellor in the 2021 Budget, later in the year. The Bonds will be available to purchase online at nsandi.com.
The Bonds will offer savers a chance to support green projects at a fixed rate over a 3-year term. The Bonds are available to those aged 16 or over, with a minimum investment of £100 and a maximum limit of £100,000 per person.
Green Savings Bonds will help finance the Government’s green spending projects designed to tackle climate change and make the environment greener and more sustainable. These projects will include making transport greener, using renewable energy over fossil fuels, preventing pollution, using energy more efficiently, protecting natural resources and adapting to a changing climate.
Further details on NS&I’s Green Savings Bonds, including the interest rate, will be available later in the year.
Ian Ackerley, NS&I Chief Executive, said: “We are delighted to be offering a new savings product on behalf of the Government and playing a key role in contributing towards the UK’s Green agenda. This exciting new Bond will be available to purchase from nsandi.com later this year and will give UK savers the opportunity to contribute towards green projects to help make the world greener, cleaner and more sustainable.”
Key features of the Bonds are as follows:
- 3-year fixed term.
- Designed to be held for the whole term, but with a cooling-off period in the first 30 days of investment.
- Available to savers aged 16 and over.
- Available to buy and manage online at nsandi.com
- Investment limits apply: minimum of £100 and maximum of £100,000 per person and can be made individually or jointly.
- Customers must have a UK bank account capable of receiving BACS payments.
- Fixed rate is guaranteed for the whole term. Interest is earned daily and added once a year on the investment's 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 customer’s 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.
Notes to Editors
1)NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to 25 million customers. All products offer 100% capital security, because NS&I is backed by HM Treasury.
2) Announced in the 2021 Spring Budget, Green Savings Bonds are a specific policy measure, and are distinct from NS&I’s normal activity. Investment in this product will not count towards NS&I’s Net Financing requirement or Value Indicator.
3) For more information on Green Savings Bonds visit www.nsandi.com/green from 4.30pm on Wednesday 30 June.
4) The Green Savings Bonds will be issued under the same UK Government Green Financing Framework as the UK’s green gilt programme. The Framework document provides further details of the UK’s plans in this space, including the types of expenditures to be financed, and can be accessed here from 4.30pm on Wednesday 30 June.
5) Carbon Trust has provided a pre-issuance impact assessment of the UK government green financing programme, which includes NS&I’s Green Savings Bonds. They found that the allocations ‘align sensibly’ with the Climate Change Committee’s recommended climate targets for the UK (known as its ‘Sixth Carbon Budget’) and they are ‘confident that the programme will contribute to achieving net zero by 2050’. You can read more about Carbon Trust’s assessment here.