NS&I has increased the rate on its Green Savings Bonds, with the new issue of its three-year bond now paying 4.73% AER (annual equivalent rate), up from 4.45% previously.
The Treasury-backed savings provider said the bonds enable savers to help fund green government projects. Launched in 2021, the bonds require a minimum investment of £100, with a maximum limit of £100,000 per person for each issue.
Eligibility and Terms
Investors must be aged 16 or over to purchase the bonds. Deposits are held for three years and cannot be withdrawn during that period.
Andrew Westhead, NS&I retail director, said: “Green Savings Bonds provide savers with guaranteed returns while supporting green government projects across the UK.”
Market Comparison
Green Savings Bonds are separate to NS&I’s net financing target, which is set by the Treasury each year.
Sarah Coles, head of personal finance at AJ Bell, said rising savings rates had been “leaving Green Savings Bonds in the dust.” She noted other options were available at higher rates, adding: “Today’s rise still puts these products some way behind the NS&I British Savings Bonds, offering 5.1% over this period.”
