National Savings and Investments has today relaunched its three-year fixed green savings bonds – but it's not a competitive rate unless you are especially keen to support eco projects.

The Treasury-backed bank is offering a new bond that pays a 3.82 per cent fixed over a three-year term. 

While this is an improvement on the 2.95 per cent it offered in 2024, it is still at the bottom of the pile compared to similar products.

Chetwood Bank offers 4.55 per cent with a minimum deposit of £1,000 while Atom bank offers 4.5 per cent if you deposit £50.

It is also important to note your money will be tied up for three years, compared to the more standard one-, two- and five-year bonds that many banks offer.

But the bond could be for you if you want to support green projects. The fund is being used by the Government to support renewable energy, cleaner transport and the environment.

The minimum investment is also relatively low at £100. You can put up to £100,000 in the bond.

As the bond is issued by NS&I, your money is backed by HM Treasury.

'Green savings bonds are very noble in that they are being used by the Government to fund renewable energy, cleaner transport and the environment. 

'For savers who want an okay return and to know their savings are doing good then they are sound – they're 100 per cent safe,' James Blower from The Savings Guru tells This is Money.

'The rate is not brilliant though with Tandem paying 4.51 per cent for three years. 

'That's over £200 extra interest over the term on a £10,000 investment. 

'Some savers might rather have the extra and then donate the additional interest to good causes instead which is what I'd personally do.'

'The rate has been increased from 2.95 to 3.82 per cent but it's still way below the current best buy 3-year fixed rate bonds,' adds savings expert Andrew Hagger.

'This may appeal to some savers who are keen to support green projects, however, I don't see there being a huge demand even at the improved rate.'

NS&I is most known for its Premium Bonds, which offer no interest but let you win tax-free cash prizes every month. 

With more than 22 million people using them, they are the most popular savings product in the UK.

Three year rates are a niche product. The top one-year fix from Chetwood offers 4.65 per cent while the top two year rate from Vida pays 4.61 per cent.

Compare the best buy fixed savings rates in our independent This is Money tables.