NS&I raises interest rates in major savings announcement

National Savings and Investments (NSI) has brought back its Green Savings Bonds with a boosted interest rate for British savers.The eighth issue of these environmentally-focused bonds now offers 3.82 per cent AER, representing a significant increase from the 2.95 per cent rate available on the previous issue.First introduced in 2021, the bonds allow customers to contribute towards environmentally beneficial government initiatives while earning a fixed return on their deposits.The savings provider, which serves more than 24 million customers across the UK, has come under fire in recent weeks following the revelation that the families of deceased customers were unable to access their loved ones' funds after they passed.Savers can invest anywhere from £100 up to £100,000 per person in each issue, with a minimum age requirement of 16.Once deposited, funds remain locked for the full three-year period with no early access permitted.The bonds carry complete protection through Treasury backing, offering 100 per cent security on all deposits held with NSI.Money raised through these bonds works alongside gilts to finance green initiatives under the UK Government Green Financing Framework, which was expanded in November 2025 to encompass nuclear energy projects.LATEST DEVELOPMENTSRachel Reeves's pensions inheritance tax raids force savers to withdraw £2.3billion from retirementsPension rules change more than 30 times in 20 years as retirement savers face crippling uncertaintyHMRC issues tax warning letters to savers with £3,500 in accountsThese bonds operate independently from NSI's annual net financing target, which the Treasury determines each year.Rachel Springall, a finance expert at Moneyfactscompare.co.uk, suggested the bonds may appeal to savers with big pots who are happy to forgo higher interest rates available elsewhere.She said: This latest offering from NSI will likely be an enticing choice for savers who are content to lock their cash away for three years.However, the rate can be beaten by alternative brands, as many of the top rate deals pay 4.50 per cent or more.