NS&I green bond savers set to miss out on interest rate rises
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NS&I green bond savers risk missing out on rate hikes if they close a deal before August
Rate hike: NS&I has launched a new issue of its three-year Green Savings Bond at a very competitive 4.2%
Environmentally friendly savers are getting a big boost by locking up their money after National Savings & Investments (NS&I) raised the interest paid by its flagship green bond.
NS&I launched a new issue of its three-year Green Savings Bond yesterday at a highly competitive 4.2 percent, up 1.2 percentage points from the last issue six months ago.
However, the move risks enraging savers who signed up in August when it paid 3 percent, or worse, those who set a paltry 1.3 percent last year, or 0.65 percent in 2021.
Someone putting £5,000 into the bonds in 2021 will earn just £32.50 a year in interest, compared to £210 a year a new client would get now.
Laura Suter, of broker AJ Bell, says: “Clients who bought at launch in 2021 will be frustrated that they’re locked into that deal, where new clients can get a much higher rate.”
l.purkess@dailymail.co.uk