Following today’s launch of the NS&I Green Savings Bond, Steven Cameron, Pensions Director at Aegon said:
“The government risks sending out mixed messages with today’s NS&I green savings bond launch, paying a modest 0.65% interest rate over a fixed 3 year term. Elsewhere, there’s a drive from both Government and regulators to encourage people to move any ‘excess’ cash savings, paying very little in interest into stocks and shares which offer the potential for real growth and which can also support the green agenda and the UK’s economic recovery. The messages are mixed further by the likelihood of future rises in both inflation and interest rates.
“While the 0.65% interest rate is unlikely to be particularly appealing, the intention to provide regular updates on how the funds are being used is innovative and may capture the public’s attention. With plans to require occupational pension schemes to report on alignment with the Paris agreement, might the Government lead the way by doing likewise within the Green Savings Bond’s investments?”
