National Savings & Investments (NS&I) has released more details of its Green Savings Bond, originally announced in the spring Budget.
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The bond will have a fixed term of three years, with no early encashment options, and an interest rate of 0.65% gross. It will be open to all investors from age 16 upwards, with a maximum investment of £100,000 and a minimum of £100.
Interest will be added to the bond every year with no tax deducted at source and paid on maturity. The interest will count towards your taxable income in the tax year you Bond matures. This doesn’t mean you’ll have to pay tax on it, it all depends on how much interest you earn in total and what rate of tax you pay.
All money invested in NS&I is passed onto HM Treasury and contributes towards government spending. Money invested in Green Savings Bonds will also go to HM Treasury and be held in a general account. HM Treasury then plans to allocate an amount equivalent to the proceeds raised from Green Savings Bonds, to its chosen green projects, within two years.
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