After a lacklustre initial launch, National Savings and Investments (NS&I) are releasing their 3rd tranche of Green Bonds. After much hype the initial launch was lacklustre due to interest rates which were well short of market average. The new bonds are available from today and with a rate of 3.00% p.a. for a three year bond, they are pretty competitive in the open market, where the top rate currently available is 3.40%.
Green Bonds have the benefit of being backed by the government and therefore give you extra security. The money will be invested into projects to tackle climate change, improve sustainability and increase renewable energy capacity.
Clearly, with inflation heading into double digits, these investments will not give you inflation proof growth – but then currently that’s not likely from anything! For the investor looking for a secure, safe haven for money that might be needed in three years’ time, this is a good way to combine safety and support for green projects.
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