The initial launch of Green Savings Bonds from National Savings & Investments (NS&I) was met with criticism about the poor rate of return on offer.
A new launch of the Bonds comes with a more attractive interest rate, more than double what NS&I previously offered to savers.
While the new interest rate remains below the most competitive for a three-year fixed-rate savings bond, the combination of a more attractive interest rate and the green credentials of the Bonds are likely to attract more savers.
The new Issue of Green Savings Bonds has a fixed rate of 1.30% gross/AER over a three-year term.
Money invested in the Green Savings Bonds will finance green projects selected by the Government, including those designed to help tackle climate change.
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.
Savers can invest from a minimum of £100 in Green Savings Bonds, which have a maximum limit of £100,000 per person per Issue.
You need to be 16 or over to purchase the Bonds.
John Glen, The Economic Secretary to the Treasury, said:
“The UK continues to be a world leader in green finance, and our innovative Green Savings Bonds give savers the opportunity to contribute towards projects which will secure a cleaner and more sustainable future for the UK.
“I am pleased that savers across the UK will have the chance to invest in this second Issue of Green Savings Bonds at a new rate, one that reflects upward movement across the wider fixed term market.”
Ian Ackerley, NS&I Chief Executive, said:
“We are pleased to offer savers the opportunity to invest in a second Issue of Green Savings Bonds at a higher interest rate. Since we launched Green Savings Bonds in October 2021, average rates among fixed term products have increased, along with the bank base rate.
“This new Issue means that savers can save at a new competitive rate whilst also supporting the UK’s green agenda in six key areas to help make our environment greener, cleaner and more sustainable. Our savers also benefit from NS&I’s 100% security on all capital invested due to HM Treasury’s backing.”