Southwark Green Investment
Frequently Asked Questions
How much can I invest?
You can invest from as little as £5. There is no maximum amount you can invest.
You can invest and get tax-free returns by investing through an Innovative Finance Individual Savings Account. If you choose to do this, you can only deposit £20,000 of new money to invest each tax year.
Please only invest what you can afford, there is no guarantee you can access your invested capital before the end of the term.
What interest rate will I get?
Our first round of Southwark Green Investment launched on 26 February 2024 and offers a fixed 4.6% yearly return.
How long will it take to see a return?
Regular returns of interest and capital are paid every six months across the term of the investment. Returns are paid into your Abundance account for you to withdraw or reinvest as you wish.
Do I have to pay tax on my investment returns?
Returns on your investment are the same as income you receive from other savings and investments. You will need to pay tax on your returns if you receive income above the Personal Savings Allowance, unless you invest through an Innovative Finance Individual Savings Account.
For more information on how much tax to pay on savings interest, visit the government website.
Can my business invest?
Yes, any company can set up an account to invest just as an individual can. There are slightly different requirements for the ID check process, but the Abundance team will help them through that.
What if I change my mind?
You have a 14-day refund period from the date you invest to cancel your investment and receive a full refund.
Can I get access to my money before the end of the investment term?
You should plan to hold this investment for its full term. But, if you do need to access your capital earlier, you can list it for sale on the Abundance marketplace. That means other Abundance investors can offer to buy your investment. There are no fees for this service. However, this doesn’t guarantee that you will receive the full amount you invested back, as this depends on what other investors are willing to pay for your investment.
What happens if the funding target isn’t reached?
The investment will fund green projects in Southwark regardless of whether we reach the full funding target.
How can I be sure that the money will be used for what is said?
The Green Finance Framework sets out how Southwark Council intends to manage the investment. It means that funds raised can only be used to help deliver on eligible green projects from within this framework. Abundance will provide oversight on the use of funds across the investment term.
This investment is described as ‘low risk’ – what does that mean?
All investments carry risk. However, the risks of lending to councils are different from those of investing in companies.
It is important to remember that this is an investment, not a savings account. As a result, returns are not guaranteed. The investment is also for a fixed term, which means there is no guarantee you can access your invested capital before the end of the term.
When you invest in a scheme like this, you are lending money to the council. If the council runs into difficulties, there may be delays in receiving your interest or getting your money back. However, government legislation requires that councils maintain a balanced budget to stay financially viable. This means that we are legally obliged to bring our budget into balance. Even if a council does have financial difficulties, unlike a company, the council cannot be declared bankrupt to avoid repaying its debts. This means that no UK council has ever failed to pay back an ordinary loan.
Who is Abundance Investment?
Abundance Investment is the ethical crowdfunding platform arranging this investment on behalf of Southwark. It is regulated by the Financial Conduct Authority.
The company provides a website for investors to set up their accounts, make their investments, receive returns and get updates on the scheme.
Abundance has been operating for over a decade and has helped deliver other successful council schemes from The Cotswolds to Camden.
Find out more about their investment principles on the Abundance website.
Risk warning
As with all investments your capital is at risk. Investments are long term and may not be readily realisable. This content has been approved as a Financial Promotion by Abundance who are authorised and regulated by the Financial Conduct Authority (525432). Approval date: 26 February 2024.
Page last updated: 29 February 2024
