NS&I green bond savers set to miss interest rate hikes if they strike a deal before August
Rising rates: NS&I launched a new issue of its three-year Green Savings Bond at a very competitive rate of 4.2%
Environmentally conscious savers will get a major boost to lock in their money after National Savings & Investments (NS&I) raised the interest rate paid by its flagship green bond.
NS&I launched a new issue of its three-year Green Savings Bond yesterday at a very competitive rate of 4.2%, an increase of 1.2 percentage points from its last issue six months ago.
However, the move risks infuriating savers who signed up in August when it was paying 3%, or, even worse, those who pegged for a measly 1.3% last year, or 0.65% in 2021.
Someone who invests £5,000 in the bonds in 2021 will only earn £32.50 a year in interest, compared to the £210 a year a new customer would get now.
Laura Suter, of broker AJ Bell, says: “Customers who bought at launch in 2021 will be frustrated to be locked into this deal, as new customers may get a much higher rate.”
l.purkess@dailymail.co.uk
