Featured - Account Types
What type of savings account do you need?Find out about the different types of savings accounts available to suit a variety of needs.
Savings
ISAs
Residential
Buy to let
Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
Loans
Featured - Life Insurance
Life InsuranceFor peace of mind that your loved ones will be supported financially after you die, consider taking our life insurance. Find out more and compare policies.
Home & vehicle
Health & travel
Featured - High interest current accounts
Find current accounts offering in-credit interest rates up to 5.00% AER.
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
Calculators & guides
Business savings
Business products
Business insurance
How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
Categories
Featured guides
Popular news
Latest news - by category
Other money & finance news
Featured Star Ratings categories
Other Star Ratings categories
Featured - Account Types
What type of savings account do you need?Find out about the different types of savings accounts available to suit a variety of needs.
Savings
ISAs
Residential
Buy to let
Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
Loans
Featured - Life Insurance
Life InsuranceFor peace of mind that your loved ones will be supported financially after you die, consider taking our life insurance. Find out more and compare policies.
Home & vehicle
Health & travel
Featured - High interest current accounts
Find current accounts offering in-credit interest rates up to 5.00% AER.
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
Calculators & guides
Business savings
Business products
Business insurance
How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
Categories
Featured guides
Popular news
Latest news - by category
Other money & finance news
Featured Star Ratings categories
Other Star Ratings categories
Green Savings Bonds are now paying 2.95% AER after NS&I cut rates.
National Savings & Investments (NS&I) released a new issue of its Green Savings Bonds last week, paying a reduced rate of 2.95% AER over a three-year fixed term.
The rate has fallen from the 3.95% AER that the previous issue paid and is considerably less than the 5.70% AER these bonds paid in August 2023.
This latest rate cut comes soon after NS&I announced a reduction to the prize fund rate on its Premium Bonds.
As their rates continue to drop, Green Savings Bonds are falling short of the latest rate of inflation of 4%. Meanwhile, many savings accounts and ISAs are currently offering inflation-beating rates.
The Government-backed NS&I launched Green Savings Bonds in 2021 as a way to fund green Government schemes, including energy-efficiency and zero-emission transport projects.
They can be an appealing option if you want your savings to be put towards a good cause, such as helping the environment.
The lower rate of 2.95% AER applies if you save into Green Savings Bonds Issue 7 from 31 January onwards, and this rate is guaranteed for three years. You can’t access your money during this period.
If you saved into a previous issue of Green Savings Bonds, your rate won’t change.
When NS&I introduced Green Savings Bonds in October 2021, they only paid 0.65% AER. The rate has steadily increased over the years, reaching a peak of 5.70% AER from 22 August 2023.
At this point, Green Savings Bonds compared relatively well against other fixed savings accounts on the market.
However, while the rate on Green Savings Bonds has dropped 2.75 percentage points from its 2023 peak, the average rate on standard three-year fixed bonds has only fallen by 0.98 percentage points, according to Moneyfacts data .
And with average rates on three-year fixed accounts standing at 4.11% in February, with leading rates in excess of 4.50%, you are likely to find many accounts offering a better return than Green Savings Bonds.
Alternatively, you could find an even better return if you don’t lock your money away for three years. For example, the average rate on one-year fixed bonds stood at 4.62% at the start of February with many providers currently paying more than 5.00% AER.
The leading easy access accounts also currently pay more than 5.00% AER, as average rates continue to hold relatively steady at 3.17% compared to 3.19% at their 2023 peak.
If the environmentally-friendly aspect of Green Savings Bonds appeals to you, it doesn’t necessarily mean you need to sacrifice the interest you can earn. For example, you could consider ethical savings accounts that also support sustainability projects, and these may pay a higher rate than Green Savings Bonds.
You can compare savings rates on our chart to help you find a suitable account for your situation and savings goals.
All of our newsletters are available free by email to all Moneyfactscompare.co.uk users.
Send me Weekend Moneyfactscompare, Savers Friend, Companies Friend and selected third-party offers.
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best savings rates available in the UK. Compare and apply today.
Long-term bonds edge higher as short-term accounts fall.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes an increased two-year fixed ISA from Aldermore, and a five-year fixed rate mortgage from first direct.
Alongside a new Moneyfacts Annual Star Rating, the ‘Easy to Open’ logo and filter will help consumers identify fuss-free accounts.
Alongside a new Moneyfacts Annual Star Rating, the ‘Easy to Open’ logo and filter will help consumers identify fuss-free accounts.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best savings rates available in the UK. Compare and apply today.
Long-term bonds edge higher as short-term accounts fall.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes an increased two-year fixed ISA from Aldermore, and a five-year fixed rate mortgage from first direct.
Alongside a new Moneyfacts Annual Star Rating, the ‘Easy to Open’ logo and filter will help consumers identify fuss-free accounts.
Alongside a new Moneyfacts Annual Star Rating, the ‘Easy to Open’ logo and filter will help consumers identify fuss-free accounts.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.