Interest rates have undoubtedly been impacted by the Bank of England’s decision to lower its base rate in March 2020. This had a knock-on effect on familiar providers, and their savers who were left with little opportunity to make their money grow. However, there might be a new opportunity for Britons to grow their cash, as long as they are willing to take a certain amount of risk.
Cyan Finance, a specialist capital provider which describes itself as a “bank, but better” is now offering a Sustainable Bond, which helps Britons potentially gain a healthy return while protecting the environment.
Under the Cyan Sustainable Bond, the interest rate is set at 3.5 percent, tax-free, which could be a major incentive for Britons.
The minimum investment Britons can currently make into the Bond, Cyan has stated, is set at £100.
The Bond term lasts a total of three years, with the company stating this is its first individual investment opportunity.
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“Together, we can bring about change, change that is desperately needed to shift money away from destructive investments and to redirect it as a force for good.
“That is why we have created the Cyan Sustainable Bond – to make it easier for people to be part of the green banking revolution, knowing that every pound you invest with Cyan is a pound doing good for the world.”
Cyan, although probably unfamiliar to many Britons, could be a suitable solution for meeting financial goals.
The organisation was accredited by the British Business Bank in 2020 as part of the Government’s coronavirus response.
“But it is worth keeping in mind that returns are not guaranteed and their deposit would not be protected under the Financial Services Compensation Scheme (FSCS).
“It’s great to see support for tackling climate change and in a low interest rate environment there may well be savers looking towards alternative ways to grow their savings pot.
“However, it is important investors understand their attitude to risk before they commit.
“Innovative Finance ISAs allow savers to invest using peer-to-peer and earn interest, which is tax-free under the ISA wrapper.
“However, as their capital is at risk, seeking advice would be wise as they are lending out their cash via peer-to-peer for an interest return.”
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