National Savings and Investments (NS&I) has brought back its Green Savings Bonds with a boosted interest rate for British savers.
The eighth issue of these environmentally-focused bonds now offers 3.82 per cent AER, representing a significant increase from the 2.95 per cent rate available on the previous issue.
First introduced in 2021, the bonds allow customers to contribute towards environmentally beneficial government initiatives while earning a fixed return on their deposits.
The savings provider, which serves more than 24 million customers across the UK, has come under fire in recent weeks following the revelation that the families of deceased customers were unable to access their loved ones’ funds after they passed.
NS&I has brought back its Green Savings Bond
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NS&I / GETTY
Savers can invest anywhere from £100 up to £100,000 per person in each issue, with a minimum age requirement of 16.
Once deposited, funds remain locked for the full three-year period with no early access permitted.
The bonds carry complete protection through Treasury backing, offering 100 per cent security on all deposits held with NS&I.
Money raised through these bonds works alongside gilts to finance green initiatives under the UK Government Green Financing Framework, which was expanded in November 2025 to encompass nuclear energy projects.
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These bonds operate independently from NS&I’s annual net financing target, which the Treasury determines each year.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, suggested the bonds may appeal “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 per cent or more.”
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Ms Springall pointed to Tandem Bank’s three-year fixed deal at 4.56 per cent AER as one competitor, while also noting that Castle Trust Bank and Gatehouse Bank provide alternative options for those prioritising returns over Treasury-backed security.
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”.