Last week, NS&I launched their green savings bond, which is the first of its kind to go on sale in the UK. The savings bond offers green-fingered investors the chance to back the government’s environmental projects that aim to create a more sustainable future for our country.
Despite the good intentions behind the new bond, many critics have been quick to question the rather low interest rates it offers. The NS&I green savings bond will pay just 0.65% for the first three years – much lower than many other savings accounts that are available on the market.
Since its launch, the new NS&I green savings bond has been met with a wave of largely negative reviews. Yes, the interest rate may not be the highest on the market, but the bond does offer a number of perks that could make it an excellent option as your next savings account. Here’s why I’d consider the NS&I green savings bond.
Your savings are 100% safe
The majority of savings accounts out there will only protect up to £85,000. After that, savers are vulnerable to losses if the banks go bust.
The NS&I green savings bond guarantees to protect 100% of your savings, no matter how much you choose to invest. Savers can deposit up to £100,000 and every penny will be protected. This means that in the event of insolvency, if you have an NS&I green savings account, you won’t lose any money.
As well as this, the NS&I green savings bond is backed by HM Treasury, instead of a bank. HM Treasury is essentially a government-run bank that has been helping savers for 160 years. Investing in a Treasury-backed bond guarantees financial security. It will give you some peace of mind when it comes to your savings.
You can use your savings for the greater good
By investing in a green bond, you’re not just helping your future but also the future of the planet. Money put into the new NS&I green savings bonds will contribute towards six key areas of the government’s environmental initiatives that are aimed towards creating a better future for the UK, and the planet as a whole.
The NS&I green savings bond may not boast the highest interest rates but it is a great way to establish yourself as one of the good guys! The investments that you make into green bonds will reap benefits long after you have taken out your funds by helping to alleviate the climate crisis.
There is high demand for sustainability
As the climate crisis becomes more evident so does the demand for renewable energy initiatives. Environmental projects are a vital part of modern society, meaning that investing sustainably has huge potential.
Environmental projects are still fairly new and will likely expand over the next few years. Investing in green bonds will allow you to jump ahead of other investors and take advantage of the relatively new market. Sustainable stocks offer huge upside potential as the need for a greener future persists.
How can I open an NS&I green savings bond?
NS&I green savings bonds are available to anyone over the age of 16 years in the UK. The bonds can be opened online with a minimum deposit of just £100 and will be open until at least January 2022.
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