Green Savings Bonds: NS&I launches new issue with higher rate

NS&I has raised the rate on its Green Savings Bonds, with the latest three-year issue now offering 4.73% AER — up from the 4.45% available on the previous issue. The Treasury-backed savings provider confirmed the increase for the bond, which was first launched in 2021 to let savers fund environmentally focused government projects.

Investment limits and access rules

A minimum of £100 must be put in, and each person can hold up to £100,000 per issue. Savers must be at least 16 years old to buy the bonds. Money placed in the bond is locked away for the full three-year term and cannot be taken out before maturity. Andrew Westhead, NS&I retail director, said: “Green Savings Bonds provide savers with guaranteed returns while supporting green government projects across the UK.” The bonds sit outside NS&I’s net financing target, which the Treasury sets annually.

Competing options pay more

Sarah Coles, head of personal finance at AJ Bell, said rising savings rates had been “leaving Green Savings Bonds in the dust”. She noted that higher-paying alternatives exist, adding: “Today’s rise still puts these products some way behind the NS&I British Savings Bonds, offering 5.1% over this period.”