Last October NS&I launched its first Green Savings Bond – it was a 3 year fixed rate savings bond, but not surprisingly it received a deluge of criticism in the media for the paltry interest rate of 0.65% which was way out of touch with the market.
Therefore, I guess it’s no surprise to see a new issue of the bond launched today – still a three year fix, but the rate has been doubled to a more competitive 1.30% (interest paid annually).
On the plus side, It’s good to see NS&I double the rate from a misely 0.65% (launched last October) to a more competitive 1.30% on it’s latest iteration of its 3 year fixed rate green bond.
Of course there are higher rates on standard fixed rate savings products, but for those looking to do their bit for ‘green’ projects, at least NS&I is now in the right ball park and has a product worth considering.
However, there are other green savings initiatives that shouldn’t be overlooked – for example the ‘Woodland Saver’ accounts from Gatehouse Bank paying 1.51% fixed for 18 months and 1.78% for 3 years.
Alternatively for those who can’t afford to tie their funds up for three years but still want to help the environment, the Evolve account from RCI Bank is a 14 day notice account paying 0.70% – it is used to fund fully electric vehicles and charging facilities.
