NS&I has relaunched its Green Savings Bonds with an increased interest rate of 3.82% AER. This marks a rise from the previous offer of 2.95% AER.
The new bonds require funds to be locked away for three years. Savers cannot access their money during this period.
Investors must contribute a minimum of £100 and can invest up to £100,000 per person for each issue.
All NS&I products are backed by the Treasury, ensuring that deposits are fully guaranteed.
These bonds support environmentally focused Government initiatives, operating alongside gilts as part of broader funding efforts.
However, Rachel Springall noted that while this latest offering may entice some savers, many top-rate deals from other banks pay 4.50% or more.
The bonds are available to individuals aged 16 and over. They were first introduced in 2021.
This relaunch follows a challenging period for NS&I, particularly involving bereavement claims affecting around 37,500 claims worth up to £476 million.
Following these developments, NS&I chief executive Dax Harkins resigned and was replaced by Sir Jim Harra.
The Green Financing Framework was updated in November 2025 to include nuclear energy projects—expanding the scope of environmental funding.
While the new interest rate offers some appeal, it may not be enough to draw savers away from higher rates available elsewhere.
As observers assess the impact of these changes, it remains crucial for potential investors to compare options carefully before committing their funds.