NS&I Green Savings Bond

masonic

I'm not surprised the rate is low, but wasn't expecting it to come in below the average rate on premium bonds. Given how successful the green gilts were, they can always raise some more money that way if these don't sell, and I imagine they won't.

ranciduk

If interest rates go up next year, may they possibly increase the rate?

masonic

ranciduk said:

If interest rates go up next year, may they possibly increase the rate?

"What's the interest rate? 0.65% gross/AER, fixed for 3 years"

See https://www.nsandi.com/products/green-savings-bonds

ranciduk

Ahh of course...

Daliah

Sky News aren't very complimentary either: https://news.sky.com/story/savers-given-chance-to-put-their-money-towards-government-green-projects-but-experts-say-returns-are-paltry-12440648

Daliah

Not much love from the FT, either: https://www.ft.com/content/55b4b9a2-8054-42a0-a1c1-1867d36b9413


In fact, I haven't found a single paper which applauded this bond. Anyone seen any positive commentary (apart from the Government sales spiel)?

masonic

With all the criticism of the interest rate, it is fortunate the other selling point (that the money will be put to good use saving the planet) is so strong given the government's flawless track record of achieving so much with its spending. I am just left wondering which party donors will set up sham companies to benefit this time. I suppose one benefit for investors is that the taxpayer is on the hook for capital and interest.

wiseonesomeofthetime

Heard the radio advert for this product yesterday.

Not once did it mention the rate in it, that I can recall hearing anyway.

I wonder why lol

JamesPeter

masonic said:

With all the criticism of the interest rate, it is fortunate the other selling point (that the money will be put to good use saving the planet) is so strong given the government's flawless track record of achieving so much with its spending. I am just left wondering which party donors will set up sham companies to benefit this time. I suppose one benefit for investors is that the taxpayer is on the hook for capital and interest.

The very low interest rate is because the government don’t really want people investing in it.

Oh yes, the Government has to give the impression that it is doing something ‘green’, what with Cop26 and Greta Thunderbug on their tails. However, the low interest rate offered is a way of signalising that they don’t want ‘normal’ people investing, however green their ideals may be.

In fact, with the very low interest rates offered cross NS&I nowadays, the entire NS&I balance sheet (and interest payment owing) will be relatively low, i.e. ideal for privatising – sorry selling NS&I off to party donors/friends in the City etc at a knockdown price.

Stubod

..will be interesting to see if anybody "invests" in these.....why would they given there are other 3 year rates that pay more?