Budget 2021: NS&I to offer 'green' savings bond

Budget 2021: NS&I to offer 'green' savings bond

The government is to offer a ‘green’ retail savings bond through NS&I this summer, alongside its first sovereign green bond.

In Budget documents issued today (March 3) the Treasury said the NS&I product will be “closely linked” to a new green gilt framework and enable savers to participate in a “collective effort to tackle climate change”.

The government will issue green gilts worth a total of at least £15bn.

The green gilt framework will be published in June and provide details on the types of expenditures that will be financed to help meet the government’s ‘green’ objectives.

It comes after Chancellor Rishi Sunak last year pledged to launch Britain’s first green sovereign bond.

Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: “The government is hoping to cash in on the demand for sustainable savings, with the launch of a green savings bond through NS&I.

“It’s offering a winning combination of helping savers support green projects, while protecting them with the strength of the NS&I name, and the 100 per cent government backing.”

Rachel Springall, finance expert at Moneyfacts, added: “NS&I is a trusted brand so it would not be too surprising to see a large uptake in these bonds in the summer, especially as interest rates sit at record lows and savers consider other ways to invest their cash.”

Isa allowances frozen

Elsewhere in the savings space, the annual Isa subscription limit will remain unchanged in the next tax year.

The adult Isa annual subscription limit for 2021-22 is £20,000, while the limit for junior Isas and child trust funds will remain unchanged at £9,000.

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