NS&I Green Savings Bonds Now Pay 4.73%: Worth It?

On October 20, the UK's government-backed savings provider NS&I quietly put a new product on the shelf: Issue 10 of its Green Savings Bonds, paying a fixed 4.73% AER for three years. That's up from 4.45% on the previous issue — a meaningful jump, and a sign that the savings-rate momentum of late 2026 is reaching even the sleepiest corners of the market.

But that headline rate comes with a strict condition: once your money goes in, it's locked away for the full three years, with no early withdrawals. So is 4.73% good enough to tie up your cash? Here's what Issue 10 actually offers, how it stacks up against its rivals, and who should seriously consider it — and who shouldn't.

What changed with Issue 10

NS&I's Green Savings Bonds were first launched in 2021, letting savers earn a guaranteed return while their money funds environmental projects. The key facts on the new issue:

• Rate: 4.73% gross/AER, fixed for the entire three-year term (up from 4.45% on Issue 9, launched in June)
• Minimum investment: £100 — maximum: £100,000 per person, per issue
• Term: three years, with no access to your money during the term
• Cooling-off: a 30-day window after purchase during which you can cancel
• Interest: calculated daily and added once a year on the anniversary; the final payment lands when the bond matures
• Age: 16 or over, and you need to be happy investing online (no phone or post applications, no trusts)
• Backing: 100% backed by the UK Treasury through NS&I

The catches, spelled out

No savings product is all upside. Before the rate tempts you, be honest about the trade-offs:

• Total lock-in. You cannot take money out until the bond matures. Emergencies, house moves, better offers appearing elsewhere — none of it gets you early access. Only put in money you're confident you won't need for three years.
• It's not tax-free. Unlike ISAs or Premium Bond prizes, the interest is taxable — in the tax year the bond matures, when the full three years of interest lands at once. It counts towards your Personal Savings Allowance (£1,000 for basic-rate taxpayers, £500 for higher-rate), so large deposits could push some of the return into taxable territory.
• Fixed means fixed in both directions. If savings rates keep climbing, you're stuck at 4.73% while newer products pay more. If they fall, you look clever. You can't know which — that's the bet you're making.

Today's rise still puts these products some way behind the NS&I British Savings Bonds, offering 5.1% over this period. — Sarah Coles, head of personal finance at AJ Bell

How 4.73% compares

Sarah Coles' point is worth dwelling on: rising savings rates had, in her words, been "leaving Green Savings Bonds in the dust." The new rate closes the gap — but a gap remains. Here's how Issue 10 stacks up against NS&I's own shelf:

Product	Rate	Access	Best for
Green Savings Bonds (Issue 10)	4.73% AER, fixed 3 yrs	None during term	Guaranteed return + funding green projects
Guaranteed Growth Bonds (3-yr, Issue 83)	5.10% AER, fixed 3 yrs	None during term	The top guaranteed 3-year rate
Premium Bonds	4.35% annual prize fund rate (variable)	Easy access	Tax-free prizes, fun factor
Direct Saver	3.75% AER (variable)	Easy access	Flexible cash you might need
Direct ISA	3.80% AER (variable), tax-free	Easy access	Using your ISA allowance

The maths that matters: choosing the green bond over NS&I's plain three-year Guaranteed Growth Bond costs you about 0.37 percentage points a year — roughly £370 a year on a £100,000 deposit. That's the price of the green label, and it's worth knowing explicitly rather than discovering later.

The green part: where your money actually goes

This isn't marketing fluff bolted onto a normal bond. Money raised through Green Savings Bonds is allocated to green government projects under the UK Government Green Financing Framework — the same framework behind the UK's green gilts. The bonds sit outside NS&I's annual net financing target, which the Treasury sets each year, meaning the product exists specifically to fund environmental spending rather than general borrowing.

If you care where your savings sit overnight, that's a genuine differentiator. A standard fixed-rate bond from a high-street bank pays you interest funded by whatever the bank does with deposits — lending, trading, the lot. Here, the destination is defined: green projects.

Who this is for — and who should skip it

Consider Issue 10 if: you have savings you definitely won't need for three years; you value a government guarantee over squeezing out the last fraction of a percent; you've already used your £20,000 ISA allowance (or the 3.80% ISA rate doesn't tempt you); and the green allocation genuinely matters to you.

Skip it if: this is emergency-fund money (it can't be — emergency cash must stay accessible); you might need the money for a house deposit, a car, or any planned spending inside three years; you're a higher-rate taxpayer making a large deposit, where the tax bill at maturity meaningfully dents the return; or you simply want the highest guaranteed rate, in which case NS&I's own 5.10% three-year bond pays more for the same lock-in.

Frequently asked questions

Is the interest tax-free?

No. Interest is taxable in the tax year your bond matures — and because three years of interest lands in a single tax year, it can push you over your Personal Savings Allowance (£1,000 for basic-rate taxpayers, £500 for higher-rate). Factor this in before depositing a large sum.

Can I withdraw early if I change my mind?

No. Once the 30-day cooling-off period ends, the money stays put until the three-year term finishes. There are no early-withdrawal options, even with a penalty.

I already hold an earlier issue. Does my rate change?

No. Fixed means fixed — your existing bond keeps paying its original rate until it matures. At maturity you'll be given options for what to do with the money, and you can decide then whether the current issue is worth switching into.

I'm in the US — is there an equivalent?

NS&I products are aimed at UK savers, but the concept travels. The US equivalent of a government-guaranteed, inflation-aware savings product is the Series I Savings Bond from TreasuryDirect: government-backed, bought online from $25 up (with a $10,000 annual purchase limit per person), a 12-month minimum hold, and a new rate announced every May 1 and November 1. With the next I Bond rate announcement due November 1, US savers face the same question as UK ones: lock in a guaranteed rate now, or wait?

The bottom line

Issue 10 is a genuine improvement: 4.73% guaranteed for three years, backed by the Treasury, funding green projects, starting from just £100. For a saver with a clear three-year horizon who values certainty and the green mission, it's a solid, honest product.

But don't buy it for the rate alone — because on rate alone, it loses to NS&I's own 5.10% three-year bond. Buy it if the guarantee plus the green destination is worth 0.37 percentage points a year to you. If it isn't, take the higher rate, or keep your cash accessible. The next step: check your timeline first. If the money might be needed before late 2029, close this tab and look at easy-access accounts instead.