The Green Savings Bonds will be available to purchase online at nsandi.com when they go on sale. The retail savings product was first announced by the Chancellor of the Exchequer Rishi Sunak in the 2021 Spring Budget, and last week, further details were revealed.
The Green Savings Bonds are intended to help finance the Government’s green spending projects designed to tackle the climate crisis and make the environment greener and more sustainable.
These projects will include making transport greener, using renewable energy over fossil fuels, preventing pollution, using energy more efficiently, protecting natural resources and adapting to a changing climate, NS&I said.
Ian Ackerley, NS&I Chief Executive, commented: “We are delighted to be offering a new savings product on behalf of the Government and playing a key role in contributing towards the UK’s Green agenda.
“This exciting new Bond will be available to purchase from nsandi.com later this year and will give UK savers the opportunity to contribute towards green projects to help make the world greener, cleaner and more sustainable.”
So, who will be eligible for these Green Savings Bonds?
People who are aged 16 or older will be eligible for the Bonds.
There are limits on investments – a minimum of £100 can be invested in Green Savings Bonds.
At the opposite end of the scale, Green Savings Bonds savers can hold a maximum of £100,000 per person.
However, these Bonds are designed to be held for the whole term – although there will be a cooling-off period in the first 30 days of investment.
Interest is earned daily and it will be added once a year on the investment’s anniversary, and paid on maturity.
NS&I also explained interest is earned without deducting any tax at source.
However, the interest is taxable – meaning it will count towards the Personal Savings Allowance in the tax year that their Bond matures.
Therefore, this needs to be declared by the individual based on their personal tax circumstances, the savings provider explained.