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NS&I boosts new issue of its Green Savings Bond
National Savings and Investments has raised the rate on its three-year Green Savings Bond to 4.73 percent annual equivalent rate, effective from 20 October.
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NS&I boosts new issue of its Green Savings Bond
National Savings and Investments has raised the rate on its three-year Green Savings Bond to 4.73 percent annual equivalent rate, effective from 20 October. The increase reflects a wider uplift in savings rates and shifting expectations around future interest rate decisions. The bond is fully backed by the government, which sets it apart from standard bank accounts that rely on the Financial Services Compensation Scheme protection of up to 120,000 pounds per provider. Savers can deposit up to 100,000 pounds, and the money is used to fund green projects that support the UK target of net zero greenhouse gas emissions by 2050. For an ordinary saver, the trade-off is clear: the bond offers total government security but pays less than the best three-year fixed rates on the market, which currently reach 5.23 percent. Eco-conscious savers can also find higher green returns elsewhere, such as Tandem Bank paying 5.00 percent on its three-year fixed saver. The bond will appeal most to those who prioritise absolute capital safety over the highest possible return.