National Savings and Investments has put a new issue of its Green Savings Bonds on sale with an increased interest rate, giving savers a higher return on a product designed to channel money into environmentally focused government projects.
The bonds allow savers to support the funding of green initiatives while earning a fixed rate over a set term. The fresh issue replaces the previous series and carries a more attractive rate, a move likely to draw attention from savers comparing returns across the market.
NS&I is backed by the Treasury, and the money raised through the bonds is earmarked for projects with environmental benefits. The product sits within the government's wider green financing programme, which uses the proceeds to support public spending on areas such as renewable energy, clean transport and energy efficiency.
The decision to raise the rate comes as savers continue to weigh up the value of cash products against other options. Green Savings Bonds are fixed-term and cannot be accessed until maturity, which means customers must be prepared to lock their money away for the full period.
NS&I has positioned the bonds as a way for savers to put their money to work on green projects while receiving a guaranteed return. The new issue is available to customers who meet the eligibility criteria, with the rate applying to the fresh series rather than earlier issues.
The increased rate may help NS&I attract deposits at a time when competition for savings has been intense. The provider has a dual remit: to raise financing for the government and to encourage a savings culture, while balancing the interests of taxpayers.
Savers considering the product will need to check the terms, including the fixed term and the minimum and maximum holding limits, before committing funds. The bonds are not a instant-access account, so the money is tied up until the term ends.
The launch of a new issue with a higher rate is likely to be watched closely by the savings market, where providers regularly adjust rates in response to demand and funding needs. For NS&I, the green bond programme also serves a public policy purpose by linking retail savings to environmental spending.
The bonds form part of a broader effort to mobilise private capital for green objectives, though the funds raised through NS&I are channelled through government rather than directly into individual projects. Savers receive a fixed return, while the Treasury uses the proceeds to finance eligible expenditure.
The new issue is now on sale, and the increased rate applies to the latest series. Savers are advised to review the product details and consider whether a fixed-term commitment fits their financial plans before investing.