NS&I Green Savings Bond goes on sale but it only pays 0.65% AER fixed over three years

MSE_Emily

The Treasury has launched a new Green Savings Bond that will be welcome news for those wanting to support green projects but the bond only pays interest of 0.65% a year, which is far below the top-paying three-year fixed savings deals. MoneySavingExpert.com founder Martin Lewis has branded the rate "pants"...
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NS&I Green Savings Bond goes on sale but it only pays 0.65% AER fixed over three years
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refluxer

That's disappointing (although not totally unexpected) news. They would have been a poor deal at twice that rate. Makes you wonder who they're targeting ? Presumably someone who sees this like a loan to a good cause rather than any kind of investment. I can't help thinking that there would be better, more immediate ways of 'doing your bit', such as reducing your own personal impact on the environment by improving the energy efficiency of your home (etc)

Even if you ignored the prospect of rapidly rising inflation, sticking £100k into these bonds would see you losing out on well over £1000 per year in interest alone, based on the current top 3 year Fixed Rate account 

Daliah

Not for me, thank you Mr. Sunak, as I have to save up for a £15K heat pump boiler and every penny counts.

cx6

Don't forget the interest rolls up over 3 years and is added in the 3rd year, thus potentially taking you over eg the £1000 interest allowance.

creditavenger

You really would have to be a "green" saver to go for these 

masonic

creditavenger said:

You really would have to be a "green" saver to go for these 

You'd also need to believe the money will be used to good effect, which some may consider naive given the government's track record.

Swipe

Daliah said:

Not for me, thank you Mr. Sunak, as I have to save up for a £15K heat pump boiler and every penny counts.

This will be the money used to generate the funds for the heat pump grants

jaybeetoo

The government may choose not to invest the money in ‘green causes’ for up to 2 years.  So for 2/3 of the fixed term period it could be used for non-green purposes.

That along with a poor interest rate, no access for 3 years, I really don’t understand who this bond is for (other than the government).