NS&I Raises Green Savings Bonds Rate to 4.73 Percent

UK government-backed savings provider NS&I has increased the return on its Green Savings Bonds to 4.73 percent gross/AER for a three-year fixed term, with the new Issue 10 becoming available on October 20, 2026. The product allows eligible savers to invest between £100 and £100,000 while helping finance environmental projects across the United Kingdom.

According to NS&I and financial publication IFA Magazine, the new rate represents an increase from the 4.45 percent offered by Issue 9, which went on sale on June 23, 2026. The bonds provide a guaranteed fixed return, but investors generally cannot withdraw their money before the three-year maturity date.

Investors must be at least 16 years old, and the bonds can be held individually or jointly. Customers also have a 30-day cooling-off period after purchasing the product during which they can cancel their investment, according to GB News.

Interest accrues daily and is added annually on the anniversary of the investment, with the final payment made at maturity. NS&I does not automatically deduct tax from the interest, which is taxable when the bond matures and counts toward the investor's Personal Savings Allowance.

The full amount deposited is backed by HM Treasury, protecting investors' principal regardless of financial market conditions, according to NS&I's product information as reported by GB News.

Andrew Westhead, NS&I's retail director, said the product combines a guaranteed return with support for environmental initiatives.

"Green Savings Bonds provide savers with guaranteed returns while supporting green government projects across the UK."

Westhead also welcomed the improved rate for the latest issue, which continues a program first introduced in 2021. The funds raised are allocated to government environmental initiatives under the UK Government Green Financing Framework.

"I am pleased that we've been able to offer savers looking to support green projects an improved rate of 4.73% gross/AER on new Bonds on sale from today."

The financing arrangement operates separately from NS&I's annual Net Financing target, which HM Treasury sets. The Treasury and NS&I agree on the annual funding required through Green Savings Bonds independently, while the bonds work alongside green gilts issued by the Debt Management Office to support the government's environmental financing requirements.

However, the higher rate does not make the product one of the market's highest-paying fixed-term savings options, according to Sarah Coles, head of personal finance at AJ Bell. She noted that savings rates had become more competitive since the previous increase in June, when the bond rate rose from 3.82 percent to 4.45 percent.

"This hike has been a long time coming."

Coles said the latest increase still leaves Green Savings Bonds below other available fixed-term products, including NS&I British Savings Bonds at 5.10 percent for the same period and the most competitive market offerings at 5.23 percent at the time of publication. Those rates illustrate the difference between prioritizing environmental objectives and maximizing interest income.

"Today’s rise still puts these products some way behind the NS&I British Savings Bonds, which offer 5.10 per cent over the same fixed period, let alone the most competitive on the market at 5.23 per cent at the time of writing."

Coles said the bonds may appeal to savers who specifically want their money to support government environmental projects, particularly because the market for ethical savings products is smaller and less competitive. She also cautioned that investors should consider the effect of uncertain inflation on the purchasing power of savings over a three-year commitment.

"To be interested, you would need to be a passionate advocate of the government’s green projects."

She added that the relative appeal of the rate depends on how much return investors are prepared to forgo in exchange for supporting environmental initiatives.

"When it comes to savings, you tend to pay a price for green intentions – the only question will be how much of a price you’re willing to pay."

Coles also emphasized that the Green Savings Bonds rate and funding target are determined separately from NS&I's broader financing requirements. The new rate therefore does not establish whether rates or prize levels on other NS&I products will change.

"Talk of higher NS&I rates always inspires conversations around whether the Premium Bond prize rate will rise, so it’s worth knowing that the target and rate for Green Bonds is set entirely separately from the NS&I overall funding target, and is therefore no indication of the direction of travel for the rest of their products."