The rate is a significant increase on the 4.2% offered on the previous issue.

NS&I has been criticised in the past for offering a rate on the bond too low to attract savers.

So far the Green Savings Bond has raised nearly £1bn for green projects around the UK including greener transport, using renewable energy over fossil fuels, preventing pollution, using energy more efficiently, protecting natural resources and adapting to climate change.

The money raised by the bond is invested in green projects around the UK as part of the UK Government Green Financing Framework.

The minimum investment in Green Savings Bonds is £100, with a maximum of £100,000 per person for each Issue.

Investors need to be aged 16 or over to buy the bonds from NS&I and the full amount deposited needs to be held for three years and cannot be withdrawn during this period.

Dax Harkins, NS&I CEO, said: “I’m really pleased that we can offer a new issue of our Green Savings Bonds at a higher rate from today. This is a great opportunity for savers who want to see a guaranteed return on their investment while also making a difference with their savings by helping to make the world greener, cleaner and more sustainable.”

The first Issue of Green Savings Bonds went on sale on 22 October 2021. Since then more than £915m has been invested in them.