Chancellor Rishi Sunak is set to share more details on green bonds for savers this week.
Following reports that the chancellor will give more details of green bonds for savers this week, Becky O’Connor, Head of Pensions and Savings, interactive investor, said: “Green NS&I bonds will potentially be the Holy Grail for savers who want to do their bit but do not want to put their money at risk, as these bonds will be backed by the Treasury.
“Research suggests that the majority of UK savers want their investments to consider people and the planet alongside profits.
“The green pension and investment movement is growing and while there are already some green savings accounts on the market, the introduction of a green product by NS&I, the UK's most popular savings institution, will make green options truly mainstream.
“But whether green will mean go for savers will all come down to the rates on offer. They need to be high enough to tempt people to green options, but not so high that NS&I is deluged.
“As with other savings accounts that currently pay far less than inflation, it's unlikely that the green bonds will give savers a real rate of return that beats price rises. The hope is that they will at least compete with current best buys.”
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