Going green on bonds and gilts

By January 19, 2022LinkedIn
green bonds - wind turbines and engineer

National Savings & Investments have launched their first green bonds, paying a rate of 0.65% to investors. The money raised via these three-year fixed-rate savings plans will be used to fund the government’s environmental projects. These could include zero-emissions buses, offshore wind farms, and flood defences.

Savers will need a minimum of £100 to invest in these bonds, which went on sale in October 2021. The maximum investment is £100,000. But savers should be aware there are more competitive savings rates available. Zopa and Atom Bank, for example, were paying 1.6% and 1.45% on three-year bonds as these NS&I products launched. Meanwhile Cynergy Bank is paying 0.66% on an easy access account.

The government also launched its first green gilt in September 2021. This was open to institutional investors, including pension funds, and raised £10bn which the government will invest in green projects. Further green gilts will be offered later this year.

If you are interested in discussing the above with one of our experienced financial planners at FAS, please get in touch here.