NS&I, the government-owned savings business, is to launch a green savings bond for retail investors in the near future, it confirmed this week.

NS&I has extended its contract with Chartered Financial Planning firm Matrix Capital to provide advice to £1m Premium Bond winners for a further two years.

NS&I, the government-backed savings provider, has promised better service after being overwhelmed by a surge in business in the second half of 2020 before it slashed its rates.

The average rate on a one-year fixed bond has plummeted to a record low of 0.61%, less than half the rate of a year ago when it was nearly 1.3%.