Municipal investments are low-risk loans to UK councils. Councils use these funds to improve the local area, while offering you a competitive and stable long-term income.
Our municipal investments are long-term and low-risk. They’re similar to other low-risk investments, such as NS&I (National Savings & Investments) and fixed rate savings products (learn more about how they compare). And you can invest through an Innovative Finance ISA for tax-free returns.
They offer competitive rates of return, letting your money keep pace with the rising cost of living, and they pay fixed cash interest payments every six months across the investment term, which is usually 5 years. See how the returns work.
Our flexible approach lets you choose how you want to invest. You can pick your own investments, and decide how you use those regular interest payments: either reinvest in new municipal investments to keep growing your money, or withdraw for free to use elsewhere.
Cash payments every 6 months to reinvest or withdraw
Everyone invests on the same terms
Invest through an Innovative Finance ISA
The rates you see are the rates you will get
List on our marketplace
Choose if you want to withdraw your cash to use elsewhere, or reinvest in new municipal investments
Whether you’re investing a little or a lot, we offer a simple way to grow your savings - as well as the flexibility to alter your approach if your situation changes.
Reinvesting your returns is an easy way to grow your pot. Use the calculator below to get an idea of how your money can grow when you keep it working.
Please enter £5 or more, or leave this as £0.
Please enter £5 or more, or leave this as £0.
Period of investment
Estimated value after 10 years
£30,723
Total paid in
£22,000
Estimated growth
£8,723
This is just an estimate of your future portfolio based on an example interest rate and the below assumptions. The interest rate on new municipal investments will vary over time. 4.55% is the average interest rate of all historic municipal investments to date, with a minimum rate of 4.1% and a maximum of 4.85%. Past performance is not a guide to future performance.
The calculation is for illustrative purposes only and is based on the following assumptions:
It is simple to invest with us - you can be up and running in under 10 minutes. There are no fees and our minimum investment is just £5.
Choose your investments
Pick the councils you want to invest in - you can easily spread your money across multiple investments if you want to.
Sign up for a free account
You need to create an Abundance account to invest. This also gives you the option to get email updates about latest investments.
Complete account setup
Before you invest for the first time, we will do a simple online identity check and ask you some questions as part of our regulatory requirements.
The rates on our municipal investments are competitive with other long term saving and investment products of similar risk level. We set the interest rate for each municipal investment on the day it launches, and it is fixed for the entire investment term.
This is our consistent approach to setting our investment interest rates. We don’t do teaser rates, promotions or tiered rates based on how much you invest.
Interest rate if you invest today
4.55%
Past 12 months avg interest rate
4.2%
Average 2025 interest rate
4.2%
Avg of all investments
4.1%
Past performance is not a guide to future performance. Interest rates on future municipal investments will vary. Figures shown are an average of the rate on municipal investments opened in that period. Learn more.
Our municipal investments are a good option for savers and investors looking to create a long term, low-risk income who also want to see their money making a positive difference. If you are looking to compare the features of our investments to other low-risk options, here are some things you should think about.
Investments are different from savings
Fixed rate deposits and bank bonds are deposit products with FSCS protection. You do not get FSCS protection with our municipal investments. It is also important to remember that investment involves some risks, so make sure you understand these before you proceed.
Similar financial features
Our municipal investments offer similar features to fixed rate deposits and bank saving bonds. All these options lock your money away for a fixed period and pay a fixed rate of interest over the investment term, and you have tax free ISA options available.
Different ways to exit early
With municipal investments you have the option to list your investment for sale using our marketplace, although a sale is not guaranteed. Fixed rate deposits may allow some withdrawals but many don’t and any withdrawals typically come with a penalty - the exact terms vary from one product to the next. Bank savings bonds typically have to be held for the full term.
See what your money is doing
You can see directly what your money is funding when you invest with us. This is rarely possible on deposit products like bank savings bonds and fixed term deposits.
Lending to government
NS&I offer a range of saving and investment products, backed by the Treasury. When you use NS&I you are lending money to the national government. With municipal investments, you are also lending to the public sector - but in this case it is local government.
Both are low risk options
For both options the risk of losing your money is very low. NS&I is backed by the Treasury, and municipal investments are backed by councils. We discuss this topic in more detail here.
Municipal investments have some unique benefits
Our municipal investments offer some distinct financial benefits over the fixed term products NS&I offers. The investments are ISA eligible and you have the option of trying to sell before maturity if you need to.
