The UK’s National Savings and Investments (NS&I) has issued its second Green Savings Bond offering a higher fixed rate than the inaugural product.
Following the first issuance in October 2021, which was announced in that year’s Spring Budget along with the UK’s green gilt programme, the new NS&I product will offer a fixed rate of 1.3% over three years – up from the 0.65% that was offered in the first launch.
The economic secretary to the Treasury, John Glen (pictured), commented: “The UK continues to be a world leader in green finance, and our innovative green savings bonds give savers the opportunity to contribute towards projects which will secure a cleaner and more sustainable future for the UK. I am pleased that savers across the UK will have the chance to invest in this second issue of green savings bonds at a new rate, one that reflects upward movement across the wider fixed term market.”
As part of the UK Government Green Financing Framework, the green savings bonds help finance projects designed to tackle climate change and help transition the UK to a more sustainable economy. For example, projects include greener transport, renewable energy, pollution prevention, energy efficiency and protection of natural resources.
Ian Ackerley, NS&I chief executive, said: “We are pleased to offer savers the opportunity to invest in a second issue of green savings bonds at a higher interest rate. Since we launched green savings bonds in October 2021, average rates among fixed term products have increased, along with the bank base rate. This new issue means that savers can save at a new competitive rate whilst also supporting the UK’s green agenda in six key areas to help make our environment greener, cleaner and more sustainable. Our savers also benefit from NS&I’s 100% security on all capital invested due to HM Treasury’s backing.”
The minimum investment in green savings bonds is £100, with a maximum limit of £100,000 per person for each Issue. The full amount deposited will be held for three years and cannot be withdrawn during this time.