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Green bond (Budget 2021/NS&I)
Posted: March 4th, 2021, 10:05 am
by yorkshirelad1
So we have the announcement of a Green Bond in Budget 2021 offered by NS&I
see e.g.
https://www.nsandi.com/get-to-know-us/green-savingNS&I's customer service seems already overloaded (I'll leave it to someone else to give a more accurate description, but the media do a good coverage of NS&I's current "service" levels)
So the budget gives a new inititative to an organisation that can barely cope with what it's already got on its plate ....??
Defies belief.
How about making it available through the open market, e.g.a Green ISA. Oh wait, how many different varieties of ISAs do we already have ....
Doh!!!
Re: Green bond (Budget 2021/NS&I)
Posted: March 4th, 2021, 2:09 pm
by absolutezero
I will look at the T&Cs of this when it is released, but my initial feeling is the 'green' label would best describe those who think it will be a good deal....
Re: Green bond (Budget 2021/NS&I)
Posted: March 4th, 2021, 3:49 pm
by didds
why?
IF it works like premium bonds - if you are happy investing in PBs, then it seems reasonable
IF it some sort of straight interest return like NS&I savings vehicles, then it seems reasonable.
IF it is backed with the quasi-gilt guarantees of govt backed savings/investments, then it seems reasonable.
Thats a few IFS. But none of those rely on anything being "Green" - just safe investments.
Re: Green bond (Budget 2021/NS&I)
Posted: March 4th, 2021, 4:11 pm
by absolutezero
You are making rather a lot of assumptions there...
Re: Green bond (Budget 2021/NS&I)
Posted: March 4th, 2021, 4:19 pm
by swill453
Moneysavingexpert has a page on it with a little information, though I guess much of it isn't confirmed.
Essentially, you will open a normal savings account - likely for a certain period of time - and most probably you'll get a fixed interest rate in return.
...
The Government, through NS&I, will pay you an interest rate in return for the use of your money over that period, and then it'll pay your lump sum savings back in full, plus the interest, once the bond's term is over.
...
we don't currently know what interest rate savers will get in return for their cash.
What we do know is that the Government hasn't included the amount it hopes to raise from these bonds in the financing target it sets NS&I. This has led to hope that the green bond could offer a market-leading rate.
...
These bonds are operated by NS&I, which rather than being a bank is backed by the Treasury. This means you get 100% safety for your cash (well, unless the UK itself goes bust, in which case we've all got bigger problems).
...
https://www.moneysavingexpert.com/savin ... ings-bond/Scott.
Re: Green bond (Budget 2021/NS&I)
Posted: March 4th, 2021, 7:18 pm
by absolutezero
The Government, through NS&I, will pay you an interest rate in return for the use of your money over that period, and then it'll pay your lump sum savings back in full, plus the interest, once the bond's term is over.
Blow me down. That sounds like... a bond!
Re: Green bond (Budget 2021/NS&I)
Posted: March 4th, 2021, 7:38 pm
by UncleEbenezer
Hmmm. Is there any difference (apart from the name) from
viewtopic.php?f=11&t=27922 ?
Which was itself Just Another sticking plaster for a trashed market.