National Savings & Investments has relaunched its Green Savings Bond, offering UK savers a three-year fixed rate of 3.82% as it returns to the market for the first time in five months.
The government-backed provider’s latest issue, available to anyone aged 16 or over, requires a minimum investment of £100 and allows holdings of up to £100,000 per person. Interest accrues daily and is paid annually, but the capital is locked away for the full term, with access only at maturity after three years. The bond is managed exclusively online via the NS&I website and includes a 30-day cooling-off period.
This marks the eighth issue of the product since its 2021 launch, with the previous bond withdrawn in November 2025. The rate represents a significant rise from the last issue’s 2.95%, though it remains below the product’s peak of 5.70% offered in August 2023.
How your savings become ‘green’
The central appeal of the bond is its environmental purpose. Money invested is allocated to fund UK government green projects as defined by the UK Government Green Financing Framework. According to NS&I, this encompasses a range of initiatives including renewable energy like offshore wind, pollution prevention, energy efficiency, sustainable transport such as electric vehicles, and climate change adaptation.
A key detail for ethically-minded investors is a recent update to that framework. In November 2025, it was revised to include funding for nuclear energy projects. NS&I states that bonds purchased or renewed before 8 April 2026 adhere to the original 2021 framework, while newer issues may fall under the updated rules. The government has committed to publishing details on how the raised funds are spent and the environmental benefits achieved, with the Carbon Trust having provided a pre-issuance assessment aligning the allocations with UK climate targets.
This mechanism distinguishes it from other “green” accounts where providers might simply plant trees for new customers or avoid investing in carbon-intensive industries. The funds raised are separate from NS&I’s annual Net Financing target and carry the unique security of being 100% backed by HM Treasury, a guarantee that exceeds the £85,000 protection offered by the Financial Services Compensation Scheme.
Weighing the rate against the competition
While the security and green credentials are strong, the rate itself is not market-leading. Finance experts note that the returns can be beaten elsewhere. Rachel Springall, a finance expert at data firm Moneyfactscompare, said the NS&I bond “will likely be an enticing choice for savers who are content to lock their cash away for three years,” but confirmed that “the rate can be beaten by alternative brands, as many of the top rate deals pay 4.5% or more.”
Savers seeking both a competitive return and an environmental focus have several alternatives. Castle Trust Bank offers a three-year fixed rate e-Cash ISA at 4.42% and a taxable three-year fixed e-Saver at 4.21%, planting a tree for each account opened and funded with £1,000. Tandem Bank, which uses deposits to fund greener lending like solar panels and has lent over £572 million to decarbonise UK homes, offers three-year fixed green accounts at 4.00%. Gatehouse Bank, a Shariah-compliant provider that avoids sectors like gambling and tobacco, offers a 3.85% three-year bond and also plants trees for funded accounts.
A critical factor for personal finance is taxation. Unlike an ISA, interest earned on the NS&I Green Savings Bond is taxable. It counts towards an individual’s Personal Savings Allowance in the tax year the bond matures, meaning basic rate taxpayers could earn up to £1,000 in interest tax-free, higher rate taxpayers £500, and additional rate taxpayers nothing. Savers may need to declare the interest to HMRC.
The current economic context adds another layer. With the Bank of England base rate at 3.75% and inflation at 3%, the NS&I bond’s 3.82% rate offers a positive real return, protecting savings from erosion. Choosing a fixed-rate product now also insulates savers from potential future falls in interest rates during the three-year term.
