National Savings and Investments (NS&I) has put its three-year Green Savings Bonds back on sale with a new higher rate of 3.82% AER.
But NS&I isn’t the only one boosting interest on fixed-rate savings products. Rates on all bonds lasting one to five years have increased since last month, as providers adjust returns to meet expectations of a more turbulent future economic outlook.
Here, Which? takes a closer look at what the account offers and how it stacks up against other three-year deals on the market.
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What does the new Green Savings Bond offer?
The Green Savings Bond was launched by NS&I in 2021 to encourage investment in environmental projects. It can be opened with a minimum deposit of £100, up to a maximum of £100,000.
The eighth issue of the account pays a fixed rate of 3.82% AER for three years – almost one percentage-point higher than the the previous issue – which paid 2.95% AER.
It means someone who invests £10,000 will earn £261 more in interest across the three years compared to a saver who opened the previous issue of the account. That’s assuming interest is compounded every year.
Those who opened previous issues of the Green Savings Bond will not see a change to their rate as the bonds are fixed for three years.
Another reason to put your money in an NS&I savings account is the level of protection the provider offers. All funds deposited are backed by the Treasury, so there’s no limit on compensation if NS&I goes bust.
Deposits held in other UK-authorised banks, building societies and credit unions are covered up to £120,000 per person, per institution under the Financial Services Compensation Scheme (FSCS).
- Find out more: what is National Savings and Investments?
How have the rates changed?
It’s the first time NS&I has increased interest on the Green Savings Bond account since August 2023. Here’s how the rates have changed since it launched.
Can you get a better deal elsewhere?
While the current deal offered by NS&I’s three-year savings bond is far better than its first iteration, which offered 0.65% AER, savers looking for the best rate may want to hold their nerve.
Fixed-rate deals were steadily dropping at the beginning of this year, but have now started to inch up. The average rate offered for longer-term fixed accounts climbed from 3.81% AER to 3.94% between March and April 2026. One-year average rates rose from 3.79% to 3.89% over the same time period.
That may be in response to the Bank of England holding the base rate steady at 3.75% and providers second-guessing the impact the Middle East war will have on the UK economy.
This table shows the top rates for fixed accounts, ordered by term.
Table notes: rates sourced from Moneyfacts on 15 April 2026 and based on a balance of £5,000.
NS&I’s Green Savings Bonds lag significantly behind the current top provider for a three-year bond, which is from Hodge Bank and pays 4.58%. Challenger banks and Islamic banks also continue to dominate the market, so savers should look beyond the high street for the best rates.
The government-backed provider’s deal does, however, beat the Consumer Price Index (CPI) rate of inflation, which stood at 3% in February 2026. It’s important to pick an account with an interest rate above the current CPI figure, otherwise your savings will lose value in real terms.
- Find out more: best savings accounts
What ‘green’ projects have bonds funded?
The rate may not lead the market, but there are other reasons why savers may choose to open an NS&I Green Savings Bond.
The main selling point is that money saved will be used to fund ‘green’ projects picked by HM Treasury. This includes making transport greener, using renewable energy over fossil fuels, preventing pollution, using energy more efficiently, protecting natural resources and adapting to a changing climate.
The latest government figures from 2024 show £1.8bn has been raised via NS&I’s Green Savings Bonds since they were first launched, with £912m generated in the 2023-24 tax year alone. An additional £56bn has been raised via green gilts since 2021.
The Green Financing Framework outlines how the programme works and specifies what kinds of projects are eligible for funding raised through both Green Savings Bonds and green gilts.
Projects are grouped into seven areas: clean transport, renewable energy, energy efficiency, pollution control, natural resources, climate adaptation, and nuclear energy.
In 2023-24, transport projects, including rail and electric vehicles, received the lion’s share of money – £4.bn. Renewable energy schemes got £1.6bn, and almost £1.4bn was spent on investment into flood and coastal erosion programmes.
A total of £3bn also went towards the UK government’s efforts to help developing countries respond to climate change.
Are there any other options for ‘green’ savings?
You might not think twice about the environmental impact of choosing one bank over another, but many UK high street banks are among the worst culprits when it comes to financing fossil fuels.
To help you choose a greener bank, we examined the environmental policies of 16 of the UK’s leading current account providers in October 2025. Only two earned our Which? Eco Provider recommendation.
Only the Co-operative Bank and Triodos have no exposure to fossil fuels in their banking activities.
- Find out more: how green is your bank?