About our municipal investments

Our municipal investments allow you to invest directly into councils, letting you fund the real local green projects that we need to make a big impact on the climate emergency.


Municipal investments offer lower risk returns

Investing directly in a council is lower risk than investing in a company because 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.

Help: Can a council become insolvent?

Deliver projects that make a big impact

With our municipal investments 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.

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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 municipal investments 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.

Get tax-free returns by investing through an Innovative Finance ISA

Our new municipal investments, launched after September 2021, are structured as peer to peer loans and are eligible to be held in an Innovative Finance ISA. Our first two municipal investments, launched in 2020 with West Berkshire and Warrington Councils, are not ISA eligible.


As with all investments, municipal investments have risks

Municipal investments are not a cash savings product and therefore there is some risk of losing your money. You should expect to hold municipal investments 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.