Martin Lewis gives updated advice on premium bonds
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The new issue will pay 1.30 percent gross/AER fixed-rate over a three-year term to all bond holders. When launched last year, the Green Savings Bond had a 0.65 percent gross/AER rate, fixed for three years. This latest issue of the Green Savings Bonds is readily available to be purchased on NS&I’s website as of today.
Any money invested by the public into this savings product will be used to pay for climate-friendly initiatives which are selected by the Government.
Green Savings Bonds were specifically created to help finance the Government’s environmental spending projects.
The ultimate goal of NS&I’s “green” product is “tackle climate change and help make the UK greener and more sustainable”, according to the financial institution.
Examples of the projects which are funded by Green Savings Bonds include renewable energy over fossil fuels, preventing further pollution and adapting the country to climate change.
For bond holders, the minimum investment someone can make into Green Savings Bonds is £100.
The maximum limit someone can invest is £100,000 per person for each issue.
Any future investors in any bonds from NS&I need to be aged 16 or over to purchase them.
The amount deposited will be held for three years and cannot be withdrawn over this period of time.
Following this latest announcement, the Government outlined why this latest issue is a crucial next step in its green agenda.
John Glen, the economic secretary to the Treasury, explained: “The UK continues to be a world leader in green finance, and our innovative Green Savings Bonds give savers the opportunity to contribute towards projects which will secure a cleaner and more sustainable future for the UK.
“I am pleased that savers across the UK will have the chance to invest in this second Issue of Green Savings Bonds at a new rate, one that reflects upward movement across the wider fixed term market.”
Ian Ackerley, the NS&I’s chief executive, added: “We are pleased to offer savers the opportunity to invest in a second Issue of Green Savings Bonds at a higher interest rate.
“Since we launched Green Savings Bonds in October 2021, average rates among fixed term products have increased, along with the bank base rate.
“This new Issue means that savers can save at a new competitive rate whilst also supporting the UK’s green agenda in six key areas to help make our environment greener, cleaner and more sustainable.
“Our savers also benefit from NS&I’s 100 percent security on all capital invested due to HM Treasury’s backing.”
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