Suitable for savers who:
- want a monthly income at a variable rate
- want easy access to their money
- have £500 or more to invest
Not for savers who:
- are looking for guaranteed returns
- want interest to build up so the investment grows in value
With monthly returns, you don’t need to wait to get your hands on some extra income
We’re carrying out some essential maintenance on our systems between:
While this work takes place, you can’t log in or apply for a new account.
Our telephone team will only be able to help you with general queries during this time.
Thank you for your patience and sorry for the inconvenience.
NS&I Income Bonds
Variable, paid monthly
Taxable, paid gross
Conditions for bonus payment
No notice, no penalty
Apply, deposit and withdraw online, by phone or by post
Gross is the taxable rate of interest without the deduction of UK Income Tax.
AER (Annual Equivalent Rate) is a notional rate that illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and AER are the same.
Our Income Bonds are a safe, simple way of earning an extra income. We’ll pay the income directly into your bank account each month. And you can get your money back whenever you want, with no notice and no penalties.
Anyone aged 16 or over can open an account, either by yourself or jointly with someone else.
You can also invest in trust on behalf of someone else (called the ‘beneficiary’). Trustees can only apply by post – call us and we’ll send you the form you need.
Invest from £500 up to £1 million per person in total, across all your Income Bonds accounts.
You’ll earn a variable rate, which could go up or down. We calculate your interest daily and pay it on the 5th of each month, or the next working day. We’ll send you a statement each April, showing all your interest payments for the year.
The interest is taxable, but paid without any tax taken off. Basic rate taxpayers now have a tax-free Personal Savings Allowance of £1,000 on the interest earned on their savings (£500 for higher rate taxpayers). The interest you earn on your Income Bonds counts towards your Personal Savings Allowance, together with any interest you earn from other taxable savings.
We last updated the terms and conditions on 1 July 2015.
Living outside the UK?
You can look after your Income Bonds online and by phone. Register first, then you’ll be able to log in or call us to check your balance, review your transactions and change your personal details.
Whenever you pay in or take out money we’ll send you a record of your transaction as confirmation. And we’ll send you an annual statement every April – you can choose to go paperless or get it by post.
You can also use your account by post.
Pay in by debit card using our online and phone service.
Or post us a cheque with a completed deposit form.
All your deposits must be at least £500 and from a UK bank account in your own name.
The minimum you can withdraw is £500 and at least £500 must remain in your account to keep it open.
Or send us a withdrawal form.
When you cash in online or by phone, we’ll send your payment within three working days.
When you do this by post, we will send your payment within five working days.