National Savings & Investments has launched a green savings bond that pays a fixed 0.65% AER for three years.
However, interest rates are easily beaten by other fixed rate bonds on the market and are branded as “disappointment” by financial experts.
Bonds will be on sale for at least three months starting today, and the funds invested in them will help fund government-selected green projects.
Prime Minister Rishi Sunak announced that NS & I will launch savings products with a budget for March. To purchase bonds from NS & I, the minimum investment is £ 100, the maximum is £ 100,000 per person and the investor must be at least 16 years old.
The full amount deposited will be retained for 3 years and there will be a cooling-off period for the first 30 days, during which it cannot be withdrawn. Interest is earned daily, added annually on the anniversary of the investment and paid at maturity.
Sarah Coles, Senior Personal Finance Analyst at Hargreaves Slan’s Down, said:
“It’s a shame that Saber, who wanted a competitive price, could do the right thing on Earth and in his pocket at the same time. Instead, NS & I is the price to save and be environmentally friendly. Depends on savers who are willing to pay. “
Andrew Hagger, a personal finance expert at Moneycomms.co.uk, said: market.
“A person who invests £ 20,000 at 0.65% earns £ 130 a year on NS & I interest, while the best buy transaction from JN Bank is 1.81%, paying £ 362 a year. The difference is about £ 700 over three years.
“Thanks to the government for funding essential green projects, but people are handing over so much money to the government as inflation intensifies, which puts consumers under financial pressure from all angles. I can’t see you in a hurry. Discount. “
The bond will fund a government green spending project designed to tackle climate change and help make the UK more environmentally friendly and sustainable.
These projects include making transportation more environmentally friendly, using renewable energy over fossil fuels, preventing pollution, using energy more efficiently, and conserving natural resources. Includes adapting to changing climates.
Green Savings Bonds can be purchased and managed online from the NS & I website. Saver must have a UK bank account that can receive BACS payments.
NS & I Green Savings Bonds Dubbed “Disappointment”
Source link NS & I Green Savings Bonds Dubbed “Disappointment”