Earlier this year, a report by Deloitte found that the pandemic had heightened our eco-consciousness, with 85% of people adopting at least one lifestyle change to be more sustainable last year.
We’re probably all familiar enough with measures such as cutting down on plastic waste, but did you know that one of the other steps you can take in helping to protect the environment is to put your money somewhere it can make a difference? You could do this by investing in a green managed fund, or by buying shares in companies with solid sustainability credentials. One new and simple way to ensure your finances are having a positive impact on the planet is by investing in Green Savings Bonds from NS&I.
But what is it exactly?
Available to savers aged 16 and over, Green Savings Bonds offer the chance to contribute towards the UK’s green agenda and support a number of key areas to help the nation reach its net zero target by 2050. When you purchase Green Savings Bonds, your money will be stored away for a fixed term of three years, at a fixed rate – meaning that it is only suitable for those who will not need access to their money for the duration of the term. In any case, don’t worry about having to invest huge sums; you can start building a greener financial future by putting away a minimum of £100, and you can invest all the way up to £100,000.
Make your money work harder
One of the upshots of Green Savings Bonds is that you’re guaranteed a fixed rate of interest 0.65% gross/AER pa*. Interest is earned daily and added once a year on the investment’s anniversary, and paid on maturity.
Up your green credentials simply by investing
When you invest in Green Savings Bonds, not only are you making an empowering financial decision, but you’re also helping the planet. You may have been pondering how to make more sustainable financial choices already – well, Green Savings Bonds do this for you automatically as your money will fund projects designed to help the UK meet its net zero 2050 target, such as decarbonising hospitals and schools, forest planting, and building flood defences. You’re safe in the knowledge that your Green Savings Bonds will be building a greener and cleaner future.
It’s a safe place to be
Your money is in safe hands here. As they’re backed by HM Treasury, NS&I guarantees 100% of your savings, no matter how much you invest, will be covered. Such guarantees are a natural part of its legacy: NS&I has been helping people save for a staggering 160 years.
Still unsure?
The good news is that there’s a cooling-off period in the first 30 days of investment. So no pressure if you do need to cancel and start your savings journey another time.
How to start your green savings journey
You can buy Green Savings Bonds online via the NS&I website
*Gross/AER definitions
1 AER stands for Annual Equivalent Rate and enables the comparison of interest rates from different financial institutions and across different products on a like-for-like basis.
It shows what the notional annual rate would be if interest was compounded each time it was credited or paid out. Where interest is credited once a year, the rate quoted and the AER will be the same.
2 Gross is the taxable rate of interest without the deduction of UK income tax
