Martin Lewis: NS&I green savings bonds are ‘only for people with green trousers’

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The Government backed savings bonds have been slammed by experts for their disappointing interest rates and now the financial guru has added to this stating that they are “only for people with green trousers because the rate is pants”.

“You have to be proper green to want this.”

He then went on to show viewers how the bonds compared to similar products on the market.

“Contrast it to the top easy access savings on the market that pays more – Synergy 0.66 percent – even a relatively big name like Marcus is 0.6 percent.

“If you’re willing to lock your money away you can get nearly triple the rate with JM Bank UK.”

And, for people who are more concerned about the planet than profit, he said there is a better green option available.

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“And if you’re a green saver and you’ve only got a little amount you’ll beat the Government bond with the Ecology Building Society that pays 0.8 percent,” he said.

“You can put up to 250 a month in that.”

However, he did say that even though it’s not his bag, choosing investments based on whether they are green or not is one of the biggest things that people can do.

“It will likely have more impact than anything else – trying to choose only investments that are properly green.

“It also applies to pension funds – we have trillions of pounds between us in pension funds.

“And saying to your pension funds – ‘I want it to be green’ is going to make more difference than everything else.”

Before he ended the segment he asked the audience “Would any of you consider going for the Green Savings Bonds and sacrificing the interest rate?”

Martin seemed surprised when more than half of the young audience said they would.

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Admittedly, it was a much smaller audience than usual due to COVID-19 restrictions- but five out of eight raised their bats.

Meanwhile, other experts seem to agree with Martin.

Laura Suter, AJ Bell’s Head of Personal Finance, said the rate was disappointing.

“Many had hoped that NS&I would leap to the top of the league tables with the new product and they could have a triple win: a great rate, a Government-backed product and putting their money to greener use, but that’s not the case,” she said.

“Instead the rate is not far off a third of the top-paying account on a three-year term.”

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