The NS&I green bond rate trails behind higher offerings from other banks. 5% with a £50 minimum. 51% for a three-year fixed bond.
According to Daily Mail - Money, James Blower described the NS&I rate as not brilliant, noting that Tandem's higher rate could yield over £200 extra interest on a £10,000 investment over the term. Andrew Hagger, also cited by Daily Mail - Money, said the improved rate is still way below the current best buy three-year fixed rate bonds and may appeal only to some savers keen on green projects, with limited demand expected. The NS&I green bond requires money to be tied up for three years, unlike more standard one-, two-, and five-year bonds, and it has a minimum investment of £100 and a maximum of £100,000.
Green savings bonds are very noble in that they are being used by the Government to fund renewable energy, cleaner transport and the environment. For savers who want an okay return and to know their savings are doing good then they are sound – they're 100 per cent safe.
61%. The fund from these bonds is used by the UK Government to support renewable energy, cleaner transport, and the environment, though the specific projects and expected environmental impact remain unspecified. NS&I bonds are backed by HM Treasury, making them 100% safe, which contrasts with other banks' bonds where investor protection details vary.
NS&I is most known for its Premium Bonds, which offer no interest but tax-free cash prizes, and Premium Bonds are the most popular savings product in the UK, with over 22 million users. The exact terms for early withdrawal and the total funding raised since the relaunch have not been disclosed.
The rate is not brilliant though with Tandem paying 4.51 per cent for three years. That's over £200 extra interest over the term on a £10,000 investment. Some savers might rather have the extra and then donate the additional interest to good causes instead which is what I'd personally do.
The rate has been increased from 2.95 to 3.82 per cent but it's still way below the current best buy 3-year fixed rate bonds. This may appeal to some savers who are keen to support green projects, however, I don't see there being a huge demand even at the improved rate.