You are here: Home - Saving & Banking - News -

Chancellor ‘set to issue £15bn in green savings bonds’

Written by:
The Chancellor is set to announce the issue of £15bn of green savings bonds, allowing people to invest in renewable energy projects such as wind and solar power.

The bonds will be available to consumers through NS&I, the government-backed savings organisation, The Times reports.

Two tranches of green bonds are expected to be issued in 2021-22. The first is likely to be worth £7bn and will be issued in September, the newspaper said.

Laith Khalaf, financial analyst at AJ Bell, said the popularity of the bonds will depend on the interest rate on offer.

“Savers showed they’re willing to vote with their feet when NS&I cut interest rates across a swathe of accounts last November, and if the green savings bond offers a paltry rate of interest, it might fail to ignite demand from the public,” he said.

The money raised will be used to fund projects such as investments in wind and hydrogen power, which the prime minister has committed to in his climate plan.

Khalaf added: “The long term nature of funding green energy projects means the Treasury will need to give some thought to how long the new savings bonds will keep savers’ money locked up for.

“Presumably the government won’t want money flowing in and out regularly, so an instant access account doesn’t look feasible, and a product that locks up savings for say five years looks more appropriate. The longer the government asks savers to keep their money in the bond, the less take-up they are likely to get without offering a seriously big slice of interest.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Seven ways to get help with energy bills this winter

We knew today’s announcement was going to be painful, but it’s still a shock to the system. When this kick...

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week