NS&I has relaunched its Green Savings Bonds with an enhanced rate of 3.82% AER over a three-year term, offering savers a government-backed investment in green projects. The bonds, first introduced in 2021, represent issue eight, with issue seven having paid 2.95% AER, according to NS&I.
The bonds require a minimum investment of £100 and are available to investors aged 16 or over, as stated by NS&I. The full amount deposited is locked in for three years and cannot be accessed during this period, NS&I confirmed.
NS&I provides savings and investment products to more than 24 million customers, the institution said. All money held with NS&I carries 100% security as it is backed by the Treasury, according to NS&I. Green Savings Bonds are used alongside gilts to raise funds for green projects as part of the UK Government Green Financing Framework, NS&I explained.
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.
The UK Government Green Financing Framework was updated in November 2025 to include nuclear energy projects, the government announced. The bonds are separate to NS&I's net financing target, which is set by the Treasury each year, NS&I noted.
The newly released bonds represent issue eight, with issue seven having paid 2.95% AER, according to NS&I. Rachel Springall, a finance expert at Moneyfactscompare.co.uk, 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."
Tandem Bank offers a three-year fixed rate of 4.56% AER, according to Moneyfactscompare.co.uk. Castle Trust Bank and Gatehouse Bank provide viable alternatives to NS&I's offering, Springall added.
In March, it came to light that NS&I is preparing to pay out hundreds of millions of pounds following failures that left bereaved families missing out on savings pots, according to reports. NS&I informed the Treasury in December of an operational failure to comprehensively trace the accounts of some customers who had passed away, NS&I disclosed. NS&I has apologized and stated that the issue has been resolved for current and new bereavement claims and robust measures have been introduced, the institution said.