NS&I green bond savers set to miss out on interest rate rises if they locked into 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%
Eco-friendly savers will get a major boost for locking away their money after National Savings & Investments (NS&I) hiked the interest rate paid by its flagship green bond.
NS&I yesterday launched a new issue of its three-year Green Savings Bond at a very competitive 4.2 per cent, an increase of 1.2 percentage points from its last issue six months ago.
However, the move risks enraging savers who signed up in August when it paid 3 per cent, or, worse still, those who fixed for a paltry 1.3 per cent last year, or 0.65 per cent in 2021.
Someone who put £5,000 into the bonds in 2021 will earn just £32.50 a year in interest, compared with £210 a year that a new customer would get now.
Laura Suter, of broker AJ Bell, says: ‘Customers who bought at launch in 2021 will be frustrated they are locked into that deal, with new customers able to get a far higher rate.’
l.purkess@dailymail.co.uk
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