New NS&I Green Savings Bonds on sale with increased interest rate

• New Issue of Green Savings Bonds on sale today at a fixed-rate of 4.73% gross/AER over a three-year fixed-term
• Green Savings Bonds help finance green projects as part of the UK Government Green Financing Framework
• Funding raised is outside of NS&I’s Net Financing target

A new Issue of NS&I’s Green Savings Bonds has gone on sale today with an increased interest rate. The new Issue pays 4.73% gross/AER fixed-rate over a three-year fixed term, up from 4.45%.

Andrew Westhead, NS&I Retail Director, said: "Green Savings Bonds provide savers with guaranteed returns while supporting green government projects across the UK. 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.”

Launched in 2021, Green Savings Bonds enable savers to help fund green government projects across the UK. Green Savings Bonds are separate to NS&I’s Net Financing target set by HM Treasury each year.

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. The full amount deposited will be held for three years and cannot be withdrawn during this time.

Green Savings Bonds are used alongside gilts to raise funds for green projects as part of the UK Government Green Financing Framework.

Green Savings Bonds

The amount of annual funding required through Green Savings Bonds is agreed between HM Treasury and NS&I, alongside gilts issued by the Debt Management Office (DMO), as part of the Government’s Green Financing Framework.

Notes to Editors

1. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to more than 24 million customers. All products offer 100% capital security as NS&I is backed by HM Treasury.
2. The most recent Green Financing Framework published by the Government.
3. The Government’s UK Green Financing Allocation and Impact report.
4. AER stands for Annual Equivalent Rate and enables the comparison of interest rates from different financial institutions and across different products on a like-for-like basis. It shows what the notional annual rate would be if interest was compounded each time it was credited or paid out. Where interest is credited once a year, the rate quoted and the AER will be the same.
5. Net Financing is the measure of the net change of NS&I funds, meaning total inflows from deposits, retention of maturing monies and capitalised accrued interest, less the total outflows from withdrawals and interest or Premium Bonds prize draw payments. A positive Net Financing figure represents a positive contribution to government financing.
6. Information on NS&I’s on sale products.

About Green Savings Bonds:

Key features of Green Savings Bonds are as follows:

• 3-year fixed-term with an interest rate of 4.73% 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 previous Issues can invest in subsequent Issues. Investments can be made individually or jointly.
• Available to purchase and manage online.
• 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.
• More information on the projects funded through Green Savings Bonds. Or by searching ‘UK Government Green Financing’.