LONDON, April 26, 2026, 19:11 BST
- NS&I’s latest Green Savings Bonds come with a 3.82% gross/AER rate, locked in for three years.
- The rate’s now higher than 2.95%, though a number of three-year fixed deals continue to offer even better returns.
- Savers have Treasury backing for their funds—though they can’t touch the money before maturity.
National Savings & Investments is back with Green Savings Bonds, this time offering 3.82% gross/AER—up from the earlier 2.95%. UK savers now have the chance at a higher fixed-rate, government-backed product. The reissued bonds run for three years and landed in the spotlight this Sunday, marking another move from the state-backed group behind Premium Bonds.
Timing’s crucial here: cash savers are once more considering if they should fix rates ahead of the Bank of England’s April 30 verdict. The Bank Rate sits at 3.75%, and UK inflation is currently 3.3%. The central bank has cautioned that higher energy costs could push price growth up in the near term.
NS&I’s rate now exceeds inflation, yet it still trails the market leaders. According to Moneyfactscompare, both Oxbury Bank and RCI Bank UK have three-year fixed rates at 4.60% AER. MoneySuperMarket’s April 26 data also shows RCI Bank UK at 4.60%.
NS&I has set the investment range for its bonds between £100 and £100,000 per person, per issue. Only those aged 16 or above are eligible to apply, and once funds are locked in, withdrawals aren’t allowed until the bond hits maturity.
The annual equivalent rate, or AER, is the go-to measure for comparing savings products since it reflects the yearly return with compounding factored in. According to NS&I, Green Savings Bonds pay interest daily, credit it once a year, and release the total at maturity, with no tax withheld up front.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, called NS&I a “trusted brand” offering full capital security. Still, she noted, savers holding bigger balances could be missing out on higher returns available from other providers. Moneyfacts earlier this month highlighted Tandem Bank’s three-year green bond, which offered a 4.56% AER. Moneyfactscompare
Having a “green” label doesn’t mean the cash sits isolated in a special account. According to NS&I, funds go straight to HM Treasury, which then aims to match that amount to qualified green projects over a two-year window. The government’s updated Green Financing Framework lists clean transport, renewable energy, energy efficiency, and nuclear energy as eligible uses. NSI
This product isn’t the same as Premium Bonds. Unlike standard savings, Premium Bonds skip interest altogether, instead giving savers a shot at prizes through a monthly draw. NS&I lists its current Premium Bonds prize fund rate at 3.30%, and each £1 bond number carries 23,000-to-1 odds.
The trade-off is clear enough. Someone putting money into the new Green Savings Bond locks in government support and a fixed return, but they’re tying up their funds for three years—potentially missing out on better rates available elsewhere. Should rates climb, or if cash is needed before maturity, that peace of mind could come at a hefty price.
The relaunch lands as NS&I tries to rebuild trust following its bereavement-claims misstep. Back in March, the agency disclosed that up to 37,500 claims—representing as much as £476 million in customer money—might have been missed because its search system failed to catch all accounts held by people who had died. Sir Jim Harra, previously HMRC’s first permanent secretary, stepped in as interim chief executive.
At this stage, the deal will probably draw savers who care about total state protection and the green angle, even if it means giving up a touch of yield. Those chasing the highest rates can look elsewhere. A spread from 3.82% up to 4.60% over three years is significant, particularly for hefty deposits.
