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Savings giant NS&I has relaunched its Green Savings Bonds with an enhanced rate. The latest issue of the bonds offers a fixed rate over a three-year term of 3.82% AER (annual equivalent rate).

First introduced in 2021, Green Savings Bonds allow savers to contribute towards funding green government projects throughout the UK.

The minimum investment in Green Savings Bonds is £100, with a maximum limit of £100,000 per person for each issue.

Investors must be aged 16 or over to purchase the bonds. The full amount deposited is locked in for three years and cannot be accessed during this period.

NS&I provides a range of savingsand investment products to more than 24 million customers. Backed by the Treasury, all money held with the organisation carries 100% security.

Green Savings Bonds are used alongside gilts to raise funds for green projects as part of the UK Government Green Financing Framework, which was updated in November 2025 to include nuclear energy projects.

The bonds are separate to NS&I's net financing target, which is set by the Treasury each year.

The newly released bonds represent issue eight, with issue seven having paid 2.95% AER.

Rachel Springall, a finance expert at Moneyfactscompare.co.uk, suggested the bonds could prove attractive "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% or more."

Ms Springall pointed to a deal from Tandem Bank paying 4.56% AER fixed for three years.

She also noted that Castle Trust Bank and Gatehouse Bank provide viable alternatives to NS&I's offering.

In March, it came to light that NS&I is preparing to pay out hundreds of millions of pounds following failures that left bereaved families missing out on savings pots.

NS&I informed the Treasury in December of an operational failure to comprehensively trace the accounts of some customers who had passed away.

The savings provider has since apologised, stating 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".