These green savings bonds will be issued through NS&I and according to analysis from Hargreaves Lansdown, they could prove to be tempting for savers.
As the company detailed in early March: “The Government has announced it plans to launch green savings bonds via NS&I later in 2021.
“These are bound to be popular, and are likely to mop up some of the excess savings sloshing around.
“Triodos already offers its own green savings products, and Gatehouse Bank has launched some more recently.
“We may see more iterations of these cause-based savings accounts as banks try to differentiate on proposition instead of price.”
However, following the Budget Martin Lewis warned savers of the limited potential of investing with NS&I.
On March 3, Martin had the following to say: “NS&I’s net financing target is pretty ‘normal’ for the next year, compared to its ‘bring in lots of cash’ target for last year.
“So it is I’m afraid unlikely for us to see it reintroduce decent interest rates for the time being.”
As it stands, NS&I’s product range offers the following interest rates:
- Premium Bonds – one percent annual prize fund rate
- Junior ISA – 1.5 percent
- Income Bonds – 0.01 percent
- Direct ISA – 0.1 percent
- Direct Saver – 0.15 percent
- Investment Account – 0.01 percent