NS&I has officially relaunched its Green Savings Bonds, offering an enhanced fixed interest rate for savers. First introduced in 2021, these bonds allow individuals to contribute directly to funding environmentally friendly government projects throughout the United Kingdom.
Key Details of the New Issue
The newly issued Green Savings Bonds pay a competitive 3.82% gross annual equivalent rate (AER) fixed over a three-year term. The minimum investment required 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.
It is important to note that Green Savings Bonds are separate from NS&I's Net Financing target, which is set annually by HM Treasury. The previous issue of Green Savings Bonds was withdrawn from general sale on 26 November 2025.
How the Bonds Work
The full amount deposited will be held for the entire three-year term and cannot be withdrawn during this period. Interest is earned daily, added once a year on the anniversary of the investment, and paid in full upon maturity. Interest is taxable at maturity and will count towards the customer's Personal Savings Allowance, meaning it may need to be declared to HMRC. However, no tax is deducted at source.
Green Savings Bonds are used alongside gilts to raise funds for green projects as part of the UK Government Green Financing Framework. This framework was updated in November 2025 to include nuclear energy projects, broadening the scope of eligible investments.
Eligibility and Investment Rules
Investors in previous issues can invest in subsequent issues. Investments can be made individually or jointly. Customers must have a UK bank account capable of receiving BACS payments. The fixed rate is guaranteed for the entire term.
NS&I, which also operates Premium Bonds, advises customers who are concerned about how the interest might affect their tax situation to contact HMRC or seek professional financial advice.
