Income Bonds

Nice little earner

With monthly returns, you don’t need to wait to get your hands on some extra income

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Income Bonds: facts and figures

  • Rate 1.00% gross/AER
  • Access No notice, no penalty
  • Tax Taxable, paid gross

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

Open an Income Bonds account

Summary box: key product information

Account name

NS&I Income Bonds

Interest rates

Variable, paid monthly

Tax status

Taxable, paid gross

Conditions for bonus payment

Not applicable

Withdrawal arrangements

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

    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.

  • Interest and tax

    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.

    Check the current rate

    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.

    Find out more about tax and savings

  • Ready to apply?

Using your account

Using your account

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.

Register for our online and phone service