Martin Lewis has issued a stark warning for NS&I savers following Rishi Sunak’s Budget. NS&I will be launching a new green savings bond which according to the Chancellor, will provide retail investors with the “opportunity to contribute to the collective effort to tackle climate.”
Mr Sunak continued: “In November I announced we would launch a world-leading sovereign green bond.
“Today we’re going further, announcing a new, retail savings product to give all UK savers the chance to support green projects.”
However, in the same speech, Rishi Sunak also commented on the economic reality facing the UK, noting: “While our borrowing costs are affordable right now, interest rates and inflation may not stay low forever; and just a one percent increase in both would cost us over £25 billion.
“And as we have seen in the markets over the last few weeks, sovereign bond yields can rise sharply.
READ MORE: SEISS grant 4 extension – 600,000 self-employed to become eligible
The Money Saving Expert tweeted the following: “NS&I’s net financing target is pretty ‘normal’ for the next year, compared to its ‘bring in lots of cash’ target for last year.
“So it is I’m afraid unlikely for us to see it reintroduce decent interest rates for the time being.”
These comments were in regards to NS&I’s 2020-21 net financing forecast and financing target, which was released today.
Within this release, NS&I confirmed: “As included in today’s Budget, NS&I’s Net Financing forecast for 2020-21 is £20.0 billion, against the revised target of £35 billion, within a range of £30billion to £40 billion, set in July 2020. NS&I’s original 2020-21 Net Financing target was £6billion (within a range of £3billion to £9billion) and was set at the March 2020 Budget.
“With uncertainty and volatility in the savings market, NS&I has experienced both upside and downside pressures on Net Financing during the year and it is now forecast to deliver a lower level of Net Financing in 2020-21.”
Savings rates across the board have been very low for some time now as the Bank of England have kept the base rate at record low.
Currently, the UK’s central bank has the base rate at 0.1 percent.
This in turn limits what retail banks and financial providers can offer to consumers.
The next base rate decision will be taking place on March 18.