Government-backed bank National Savings and Investments (NS&I) has unveiled its fifth green savings bond, having hiked interest rates on the securities by 1.5 percentage points.
NS&I’s new green bonds offer savers rates of 5.7% over a fixed three-year term, it said on Tuesday, with money raised from these allocated to funding environmental projects.
“This is a great opportunity for savers who want to see a guaranteed return on their investment while also making a difference with their savings,” boss Dax Harkins said.
Green bonds were introduced in October 2021 and had since raised £915 million come March of this year, according to NS&I.
The first batch of green bonds had included interest rates of 0.65%, with this having risen to 4.2% by February 2023’s fourth issue.
“The projects funded through Green Savings Bonds will include making transport greener, using renewable energy over fossil fuels, preventing pollution, using energy more efficiently, protecting natural resources and adapting to a changing climate,” NS&I added.
Between £100 and £100,000 can be invested in the bonds, with returns guaranteed by the Treasury, though this cannot be accessed until three years have passed.