NS&I to introduce new ‘green’ savings account – everything you need to know so far

Martin Lewis offers advice on reinvesting in NS&I bonds

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NS&I is well known for its offering of Premium Bonds, but it also has other intriguing savings options. A recent announcement from the Treasury has shown NS&I will be launching a new savings product called the Green Bond in 2021. And with a somewhat volatile savings market at present, many Britons will want to know what this kind of account could offer them. 

WHAT IS THE NS&I GREEN BOND?

The NS&I Green Bond is a new savings product which affirms the Government’s promise to place more focus on green industries. 

It was announced in the latest Budget by the Chancellor Rishi Sunak. 

In his Budget speech, Mr Sunak said: “Our future economy needs investment in green industries across the United Kingdom.

“In November, I announced we would launch a world-leading sovereign Green Bond.

“But we are going further, announcing a new retail savings product to give all UK savers the chance to support green projects.”

HOW WILL THE NS&I GREEN BOND WORK?

The account will allow savers to use the money they put into the Bond to help with green, environment-based projects.

This could mean investments in green energy, or helping the Government to meet its goal of reaching net-zero carbon emissions by 2050.

But as money is saved with NS&I it means it is 100 percent protected by the Treasury.

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In return for helping the Government by providing it with funds through saving to help the environment, savers can expect to receive a solid interest rate. 

WHAT IS KNOWN SO FAR ABOUT THE NS&I GREEN BOND?

The interest rate for the NS&I Green Bond has not yet been released, but savers can expect further details in due course.

It is also not yet clear whether this will be a fixed-term account, and how NS&I will oversee it.

NS&I does currently have a host of savings options, including the ever-popular Premium Bonds which allow Britons to be in with a chance of winning up to £1million each month.

Other savings choices from the bank include Income Bonds, the Direct ISA, and the Direct Saver. 

WHAT DOES NS&I SAY ABOUT THE NEW GREEN BOND?

NS&I has provided further insight ahead of the launch of its Green Bond. 

It explained via its website: “We’re working with Government to give UK savers like you the opportunity to contribute towards projects that will accelerate the transition to a low carbon economy, create green jobs, and support the collective effort to tackle climate change.

“More details will be coming soon, including information about the savings account and how you’ll be able to invest.”

The Government-backed savings institution has said savers can expect to see this product released “later in 2021”. 

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