A new Issue of Green Savings Bonds has been released by NS&I today paying 3.95% gross/AER fixed-rate over a three-year term. The Bonds are used alongside gilts to raise funds for green projects as part of the UK Government Green Financing Framework.
Launched in 2021, Green Savings Bonds enable savers to help fund green government projects across the UK. Green Savings Bonds are separate to NS&I’s Net Financing target set by HM Treasury each year.
The minimum investment in Green Savings Bonds is £100, with a maximum limit of £100,000 per person for each Issue. Investors need to be aged 16 or over to purchase the Bonds. The full amount deposited will be held for three years and cannot be withdrawn during this time.
| Product | Issue 6 – available from 14 November 2023 | Issue 5 – available to 13 November 2023 |
| Green Savings Bonds (3-year fixed term) | 3.95% gross/AER (-1.75%) | 5.70% gross/AER |
The amount of annual funding required through Green Savings Bonds is agreed between HM Treasury and NS&I, alongside gilts issued by the Debt Management Office (DMO), as part of the Government’s Green Financing Framework.
Key features of Green Savings Bonds are as follows:
- 3-year fixed term with an interest rate of 3.95% gross/AER.
- Designed to be held for the whole term, but with a cooling-off period in the first 30 days of investment.
- Access to your investment after three years.
- Open to savers aged 16 and over.
- The minimum investment in Green Savings Bonds is £100 with a maximum limit of £100,000 per person per Issue. Investors in previous Issues can invest in subsequent Issues. Investments can be made individually or jointly.
- Available to purchase and manage online atnsandi.com.
- 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. Interest is taxable at maturity and will count towards the customer’s Personal Savings Allowance and may need to be declared by the individual. Customers who are concerned about how this might affect them should consider either contacting HMRC or seeking professional advice.
- More information on the projects funded through Green Savings Bonds can be found atnsandi.com/greenor search ‘UK Government Green Financing’.
Share this article
Related articles
Is Japan at a turning point and what does it mean for investors?
In recent months, Japanese equities have surged to all-time highs, fuelled by factors including corporate reforms and foreign inflows. Now, what lies ahead? Ernst Glanzmann, Investment Director at GAM Investments, Japan Equities, examines the current landscape,...
Alternative proteins and the benefits of insect investment
Written byLionel Artusio-Payot, managing partner of Zebra Impact Ventures When we think of farming, a herd of grazing cows might spring to mind, perhaps with fields of crops in the background. But this is old-school farming. To get an image of future farming, you...
The Woodford saga: Ontier LLP’s Kerri Wilson uses her legal lens to assess lessons so far
Analysis and insight into some of the lessons we can and should learn from the whole sorry Woodford saga, by Kerri Wilson (pictured), senior associate in the London office of law firm, Ontier LLP Recent developments involving Woodford and Link Fund Solutions (LFS)...
