NS&I explains where the money you invest goes amid Green Savings Bonds update

Budget 2021: Rishi Sunak announces plans for green projects

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NS&I has updated the Green Savings Bonds section of its website, ahead of the savings product going on sale later this year. The new three-year fixed-term bonds will be available to buy online.

Those interested will be able to invest between £100 and £100,000.

As it’s a fixed-term, the money can’t be accessed during the three-year term.

However, the interest rate will be fixed for that time – although what this will be is currently unknown.

NS&I has updated the Green Savings Bonds guide on its website, and this includes information on where the UK Government plans to spend the money.

NS&I saver in pictures

NS&I said the Green Savings Bonds will be available to buy later this year (Image: GETTY)

This includes insight into where customers’ money will go.

“All money invested in NS&I is passed onto HM Treasury and contributes towards government spending,” NS&I explained.

The savings provider went on to describe how the money will be put into a general account, with the equivalent amount invested from the Green Savings Bonds being allocated to the chosen green projects within two years.

“Money invested in Green Savings Bonds will also go to HM Treasury and be held in a general account,” NS&I said.

“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.

“The Government will publish details about how the money is being spent and what the environmental benefits are, so you can see the difference you’re making.”

Chancellor of the Exchequer Rishi Sunak announced the new green savings bonds earlier this year, ahead of his 2021 Budget statement in the House of Commons.

Mr Sunak said: “The UK is a global leader on tackling climate change, with a clear target to reach net zero by 2050 and a Ten Point Plan to create green jobs as we transition to a greener future.

ISA guide

Savings: Premium Bonds prizes are tax-free, as are savings in an ISA (Image: GETTY / EXPRESS)

“In a world first, we’re launching a new green savings bond which will give people across the UK the opportunity to contribute to the collective effort to tackle climate change.

“And we’re also launching new competitions that will unlock innovation in renewable energy and help us develop the cutting-edge technology we need to reach net zero.”

NS&I is also the home of other savings product, including Premium Bonds.

Premium Bonds are entered into a monthly prize draw, with holders being in with a chance of winning a prize.

The odds of winning stand at 34,500 to one for every £1 Bond number.

Prizes range from £25 right up to two jackpot prizes of £1million.

These are all tax-free, meaning the winners can keep the entire prize.

There are limits as to how many Premium Bonds a person must hold, and these range from £25 to £50,000.

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