Savers can help fund vital green projects across the UK while earning an improved rate of interest from today, with the third Issue of NS&I’s Green Savings Bonds paying 3.00% gross/AER fixed-rate over a three-year term.

The Bond is available to purchase online at nsandi.com, having increased from 1.30% gross/AER for the second Issue released on 15 February 2022, which has now been withdrawn from sale.

The Economic Secretary to the Treasury, Richard Fuller, said: “By increasing the returns on Green Saving Bonds to 3.00% we are demonstrating our commitment to green infrastructure in the UK.

“This will drive investment in projects to tackle climate change, improve sustainability and increase renewable energy capacity.”

Ian Ackerley, NS&I Chief Executive, said: “I am delighted that we can offer UK savers an improved Green Savings Bonds rate. Savers who are green-minded can invest in the new 3.00% Bond Issue, fixed over three years and at the same time, they also benefit from a 100% guarantee from HM Treasury on their investment.”

Green Savings Bonds will continue to help finance the Government’s green spending projects designed to tackle climate change and help make the UK greener and more sustainable. Reflecting the product’s green ambitions, Green Savings Bonds are an online only product; however, exceptions can be made for customers unable to transact online.

The projects will include making transport greener, using renewable energy over fossil fuels, preventing pollution, using energy more efficiently, protecting natural resources and adapting to a changing climate. More information can be found at nsandi.com/green.

The minimum investment in Green Savings Bonds is £100, with a maximum limit of £100,000 per person for each Issue. Investors need to be aged 16 or over to purchase the Bonds from NS&I. The full amount deposited will be held for three years and cannot be withdrawn during this time.

Key features of Green Savings Bonds are as follows:

• 3-year fixed term with an interest rate of 3.00% gross/AER.
• Designed to be held for the whole term, but with a cooling-off period in the first 30 days of investment.
• Access to your investment after three years.
• Open to savers aged 16 and over.
• The minimum investment in Green Savings Bonds is £100 with a maximum limit of £100,000 per person per Issue. Investors in the first and second Issue can also invest in the new, third Issue.
• Available to purchase and manage online at nsandi.com
• Investment limits apply per Issue: minimum of £100 and maximum of £100,000 per person, and can be made individually or jointly.
• Customers must have a UK bank account capable of receiving BACS payments.
• Fixed-rate is guaranteed for the whole term. Interest is earned daily and added once a year on the investment’s anniversary, and paid on maturity.
• Interest is earned without deducting any tax at source. Interest is taxable at maturity and will count towards the customer’s Personal Savings Allowance and may need to be declared by the individual. Customers who are concerned about how this might affect them should consider either contacting HMRC or seeking professional advice.