NS&I relaunches Premium Bonds with all new rate confirmed for savers

Joe Sledge
Sun, 26 Apr 2026 15:11:36 +0000

NS&I has relaunched its Green Savings Bonds with an increased interest rate of 3.82 per cent AER, offering savers a Government‑backed option to support environmental projects.

The latest issue requires funds to be locked away for three years, with no access during that period.

The new rate represents a rise from the previous offer of 2.95 per cent AER and marks issue eight of the product.

Bonds were first introduced in 2021 to allow savers to contribute towards environmentally focused Government initiatives.

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Savers must invest a minimum of £100, with a maximum limit of £100,000 per person for each issue.

Funds are allocated through the UK Government Green Financing Framework, which supports a range of environmental projects and, since November 2025, has included nuclear energy initiatives.

The bonds operate alongside gilts as part of wider Government funding efforts and sit outside NS&I’s annual net financing target set by the Treasury.

Investors are unable to withdraw their money before the end of the three‑year term, and applicants must be aged 16 or over.

All NS&I products are backed by the Treasury, meaning deposits are fully guaranteed.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “This latest offering from NS&I 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.”

She said the product may appeal to those prioritising security over higher returns, pointing to a three‑year fixed deal from Tandem Bank offering 4.56 per cent AER.

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Castle Trust Bank and Gatehouse Bank were also identified as providers offering higher rates.

NS&I currently serves more than 24 million customers across its savings and investment products, with the Treasury‑backed guarantee remaining a key attraction for cautious savers.

The relaunch follows developments earlier this year involving bereavement claims.

In March, it emerged that NS&I would pay hundreds of millions of pounds to families after failing to trace accounts belonging to deceased customers.

Around 37,500 bereavement claims were affected, covering savings worth up to £476million.

NS&I chief executive Dax Harkins resigned following the issue and has been replaced by former HMRC chief Sir Jim Harra.

The organisation said it has apologised and introduced measures to prevent similar problems in future.