NS&I offers boosted three percent interest with Green Savings Bonds

The product previously had an interest rate of 1.3 percent, with the rate increased with the third release of the Bonds. Savings analysts welcomed the improved three percent rate on the Bonds, making the product more competitive.

Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, said the move has pushed NS&I “within shouting distance” of the most competitive three year rates.

She said: “It gives the green light to new savers who want to tie their money up for three years and prioritise green credentials above the rate.

“New savers could see this as a green light to get stuck into ethical savings. However, it’s worth thinking carefully before you do – so you don’t succumb to the green-eyed monster during the term.

“Three years may not be the most rewarding period to fix for. Right now you’re not getting paid an enormous premium for fixing for longer – because the swaps market influences the rates on offer, and the swaps market thinks that rates will rise in the short term and fall back later.”

READ MORE: State pension payment change – you might get sum earlier this month

“Savers who are green-minded can invest in the new three percent Bond Issue, fixed over three years and at the same time, they also benefit from a 100 percent guarantee from HM Treasury on their investment.”

Savers get a cooling off period in the first 30 days of investment if they change their mind about the product.

A person must invest in at least £100 of Bonds with a maximum limit of £10,000 per person per issue.

Those who have invested in the second and third issue can also invest in the latest, third issue of Bonds.

READ MORE: State pension: 520,000 Britons set to miss out on upcoming boost

The interest is taxable when paid at maturity and will count towards the customer’s Personal Savings Allowance.

Richard Fuller, Economic Secretary to the Treasury, said: “By increasing the returns on Green Saving Bonds to three percent we are demonstrating our commitment to green infrastructure in the UK.

“This will drive investment in projects to tackle climate change, improve sustainability and increase renewable energy capacity.”

If a person opened an account with £10,000, their savings would grow to £10,940 in three years.

The Bonds launched last year, with an initial rate of just 0.65 percent over the three years.

Data obtained from a Freedom of Information request by This is Money found that £102million was deposited into the bonds during the first four months at this rate.

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TechAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More