Martin Lewis: Chancellor must hope nation is wearing 'green trousers' for 'paltry' Green Savings Bonds
As the Government announces its new NS&I ‘Green Savings Bonds’ will offer 0.65% AER fixed for three years – compared to top rates of 1.81% AER for a similar fixed-rate account – Martin Lewis says only savers who put their morals over their money will see the upside.
Martin Lewis, founder of MoneySavingExpert.com, said: “The Chancellor must really hope that the nation is wearing green trousers as the rate being offered is pants.
“It’s only paying 0.65% interest a year, a paltry amount compared to what’s available on the open market – it only just matches the top easy-access savings account, yet with the Green Bonds you have no access to your money and it’s locked away for three years.
“The right comparison is to the top three-year fixed savings account and that pays nearly three times what the Green Bonds are paying. And while NS&I is as safe as it gets, with all UK regulated savings institutions you are protected up to £85,000 per person, so that has no practical advantage for most.
“This is quite simply not an account that those whose focus is maximising interest will look at – it’s likely only something those willing to sacrifice substantial interest in order to support what they hope will be green causes are likely to consider.”
MoneySavingExpert also has a Green Bonds Guide which will also be updated with this information.