Earlier this week, National Savings & Investments (NS&I) launched a fifth issue of its three-year 'Green Savings Bonds', which earn you a fixed interest rate while supporting green projects. Read more here.
At 5.7 per cent, the rate is competitive, but there are a few things to keep in mind. First, with the best-buy three-year bonds offering up to 6.05 per cent, you are paying a price for trying to help the environment, albeit not much.
Although the choice isn’t huge, NS&I isn’t the only option for a fixed-rate savings account with a green or ethical tilt. Research firm Moneyfacts lists eight other providers offering them, including a few one and two-year bonds that pay more than NS&I – although it does depend on what you consider a ‘green’ choice.