About our new Community Municipal Investments

Our Community Municipal Investments (CMIs) are a UK first, and a brand new way of mobilising your money for good. They allow you to invest directly into councils, giving you a lower risk return that still makes a big impact on the climate emergency.

Community Municipal Investments offer lower risk returns

When you invest in a CMI you are investing directly in the council. The council sets out how it will use the money raised for each investment, and they are responsible for managing and delivering the project (and taking the risk that comes with it, such as any delays in construction, or changes in legislation). Your investment will then sit alongside the council’s other sources of borrowing for infrastructure — such as the HM Treasury’s Public Works Loan Board — to fund the delivery of the council’s overall investment plans.

That means the risk of your investment is not directly linked to the project itself and is instead linked to the wider strength of the council. Simply put, you will still receive your returns on your Community Municipal Investments even if the intended project suffers setbacks, as it is the council who carries the project risk.

In addition, unlike companies, legislation requires that councils remain financially viable. There are also strict guidelines on when and how a council can borrow money, as well as a legal responsibility to maintain a balanced budget. That means you get a lower investment return — more comparable to other Government-backed investments such as Gilts — but you are also taking a lower risk on your capital.

Read more: Council’s financial governance

Deliver projects that make a big impact

With our CMIs you are funding councils to deliver green and social projects. That means you can help tackle the climate emergency — and build more resilient communities — through funding new infrastructure such as green energy, EV charging and energy efficiency all over the UK.

Read more

A long term investment, with added purpose

Many of us have money put away for long term goals — such as retirement — and it is a priority that a proportion of the money that we put away is not exposed to high risk of loss. This is where our CMIs can help. They offer long term, lower risk returns, that let you put your money to work for your future, safe in the knowledge that it is also helping to build a better world.


Earn interest from day one

You start earning interest from the day you invest (provided the minimum investment threshold for the investment has been reached). That means the earlier you invest, the more you earn.


Community Municipal Investments aren’t currently ISA eligible

It is currently not possible to hold our CMIs in an ISA, which means that you won’t be able to invest in them through our Innovative Finance ISA. This is because investments issued by a local authority are not currently included within the scope of the Innovative Finance ISA rules. Bear in mind that you can earn up to £1,000 of interest tax free each year (£500 for higher rate taxpayers) under the Personal Savings Allowance, so you can still get a tax free return from our CMIs.


As with all investments, CMIs have risks

CMIs are an investment, not a cash savings product, so you should expect to hold CMIs for their full term. We do offer a marketplace should you need to exit the investment early, but bear in mind that if you do so there is a risk you may not get all your capital back.