NS&I has reintroduced its popular Green Savings Bonds, now featuring an improved fixed interest rate, offering savers a new opportunity to support environmentally-friendly government projects.
The latest issue of the bonds provides a 3.82% AER (annual equivalent rate) over a three-year term. Launched in 2021, these bonds are designed to channel funds towards green initiatives across the UK.
Individuals aged 16 or over can invest a minimum of £100, up to a maximum of £100,000 per person for each issue. It is important to note that the full investment is held for three years and cannot be accessed during this period.
These bonds play a crucial role in the UK Government Green Financing Framework, working alongside gilts to raise capital for designated green projects.
The framework itself saw an update in November 2025, expanding its scope to include nuclear energy projects.
As a savings provider backed by the Treasury, NS&I offers 100% security on all funds, serving more than 24 million customers nationwide.
The bonds are separate to NS&I’s net financing target, which is set by the Treasury each year.
The new bonds are issue eight, with issue seven paying 2.95% AER.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk said the bonds may be appealing “to savers with big pots who are happy to forgo higher interest rates available elsewhere”.
She said: “This latest offering from NS&I will likely be an enticing choice for savers who are content to lock their cash away for three years. However, the rate can be beaten by alternative brands, as many of the top rate deals pay 4.50% or more.”
Ms Springall highlighted a deal from Tandem Bank paying 4.56% AER fixed for three years.
She said Castle Trust Bank and Gatehouse Bank also offer alternatives to NS&I’s deal.
In March, it emerged that NS&I is preparing to pay out hundreds of millions of pounds after failures meant that bereaved families were missing out on savings pots.
NS&I notified the Treasury in December of an operational failure to trace accounts comprehensively of some customers who had died.
The savings provider has apologised and said in a statement last month that “the issue has been resolved for current and new bereavement claims and robust measures have been introduced to ensure this does not happen again”.