NS&I squeezes the rate on new green savings bonds – is it any good?

NS&I has released the seventh issue of its green savings bonds, but slashed the rate on the three-year fixed-term bond from 3.95% to 2.95% – which begs the question, is going green too expensive?

Coin and tree, financial growth concept, collecting money
(Image credit: manusapon kasosod)

National Savings & Investments (NS&I) has dropped the rate on its three-year fixed green bond again, down from 3.95% to 2.95%.

The Treasury-backed bank first introduced green savings bonds two years ago with a paltry rate of just 0.65%, which was then pushed to an attractive rate of 5.7% in August 2021 amid interest rate hikes.

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AccountRate AERMinimum investmentNotes
UBL UK 3 Year Fixed Rate ISA4.41%£2,000Open online, by post or in branch
Castle Trust Bank 3 Year Fixed Rate e-Cash ISA4.30%£1,000Open online
Close Brothers 3 Year Fixed Rate Cash ISA4.25%£10,000Open online
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AccountRate AERMinimum investmentNotes
Zopa Smart ISA - 3 Year Fixed Term ISA pot4.21%£1Open via mobile
TSB 3 Year Fixed Rate Cash ISA4.10%£1Open online or in branch
Oak North Bank Fixed Rate Cash ISA3.92%£1Open online or via mobile
Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.