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Income Bonds

Monthly income at variable rates


How to invest

Monthly income at variable rates

Investing your money in NS&I Income Bonds is a safe, simple way of earning an additional income every month. Interest rates are variable and we pay the same rate of interest to all our Income Bonds investors, no matter how much you have invested with us.

We’ll pay your income directly into your bank or building society account each month. If you need your money back, you can cash in whenever you want, without paying a penalty or giving notice.

And because NS&I is backed by HM Treasury, you can be confident that all the money you invest in Income Bonds is 100% secure.

Take a look at this summary box to help you compare our Income Bonds with investments from other providers.


Summary box: key product information

Account name

NS&I Income Bonds

Interest rates

Variable, see interest rate below

Tax status

Taxable, paid gross

Minimum investment

£500

Maximum investment

£1 million per person

Conditions for bonus payment

Not applicable

Withdrawal arrangements

No notice and no penalty

Access

Apply, deposit and cash in online, by phone or by post


Interest

£500 - £1 million

1.25% gross/1.26 % AER

Total investment £:

Current Rate:

Min purchase: £500

Max holding: £1000000

Tax status: Taxable, but paid gross



Please note

  • This calculator is for guide purposes only and may not be exact.
  • Interest is calculated on a daily basis, so the monthly income you receive will vary slightly depending on the number of days in that month.

Definitions

Gross is the taxable rate of interest without the deduction of UK Income Tax.

AER (Annual Equivalent Rate) illustrates what the interest rate would be if interest was paid and compounded once each year.


Apply

The information below is designed to help you decide if this account is right for you. If you’re still not sure, you may want to consult a financial adviser.

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It might be right if you:

  • want a monthly income at a variable rate
  • want easy access to your money
  • have £500 or more to invest

It might not be right if you:

  • are looking for guaranteed returns
  • want your interest to build up so your investment grows in value

Right for you?

Find out more about our Income Bonds, including who can invest, investment limits and interest rates…

Find out more

Ready to invest?

Find out what information you need to have to hand and what to do next.

Apply now

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Income Bonds give you a monthly income at a variable interest rate, with no risk to your capital. How much you receive depends on how much you have invested and the current interest rate.

We pay the same rate of interest to all our Income Bonds investors, no matter how much you have invested with us.


Anyone aged 16 or over can invest in Income Bonds, either individually or jointly with one other person. They can also be bought by trustees for beneficiaries.

You can invest jointly with one other person and combine your full allowance with the other investor. This means that you can jointly invest up to £2 million. We'll send any correspondence to the first investor named on your application.


For any new investments in Income Bonds, investors must be aged at least 16. However, children under 16 with existing Income Bonds accounts can still keep them and continue to make deposits and withdrawals. For children aged under 7 at 6 April 2013, the parent or guardian will need to manage their account until they reach 16.


Minimum

The minimum for each investment is £500.

Maximum

You can invest up to a total of £1 million per person.


The interest rates are variable, so they may change from time to time. Check the current interest rates

Your interest is calculated daily on balances of £500 and over. We'll pay your income directly into your nominated UK bank account on the 5th of each month (or next working day if the 5th falls on a weekend or bank holiday).

We pay the same rate of interest to all our Income Bonds investors, no matter how much you have invested.

If you apply shortly before an interest payment date, you may not receive your first payment until the following interest payment date.


Although the interest is taxable, we don't deduct the tax ourselves – so if you're a non-taxpayer you won't need to fill in an HM Revenue & Customs form to receive your interest gross.

If you are a taxpayer, you will need to declare your interest and pay any tax due. We'll send you a statement before the end of April each year, showing how much interest you've received.

Find out more about tax and savings


Once your Income Bonds account is open, you can make further deposits at any time. Each deposit must be at least £500.

Find out more about making deposits


You can cash in your Income Bonds whenever you want to – without giving notice or paying a penalty.

Find out more about cashing in

If you buy your Income Bonds by cheque or debit card we'll bank your cheque or start processing your debit card payment as soon as we receive it. So please make sure you have enough money in your account when you apply to invest.

Bonds can only be cashed in after your payment has cleared. Your payment will be cleared on the seventh working day after you bought them. This excludes weekends and English bank holidays. For example, if we receive your cheque or debit card details on a Monday, your payment will be cleared on Tuesday the following week. Allow one additional day for each English bank holiday.

Your right to cancel

If you invest in Income Bonds but then decide they do not suit your needs, let us know in writing* or call us within 14 days of receiving your welcome letter. We'll then refund your money with any interest due.

*By post to NS&I Income Bonds, National Savings and Investments, Glasgow, G58 1SB; by fax on 0141 636 8744; or by email to customerenquiries@nsandi.com


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About the terms and conditions

Please read the terms and conditions before you apply for our Income Bonds.

We last updated the Income Bonds terms and conditions on 1 April 2014.


This agreement applies to National Savings and Investments (formerly known as National Savings) Income Bonds (“Bonds”), and these terms and conditions have been set pursuant to section 12 of the National Loans Act 1968. These terms and conditions set out the obligations we have to you, as a customer, and the obligations you have to us. Please read these carefully and keep for reference.

2. Bonds are a UK Government security subject to the National Savings Stock Register Regulations 1976 (Statutory Instrument Number: 1976/2012) as amended or re-enacted from time to time (see paragraph 116). In the event of any differences between these terms and conditions and the Regulations, the Regulations will prevail.

Definitions

3. In these terms and conditions:
(a) “BACS” means the Bankers Automated Clearing Service;
(b) “banking day” means a day (other than a Saturday, Sunday or bank holiday) on which banks are generally open for business in London, and, in relation to the processing of a payment, any other place of receipt;
(c) “Bond” means an NS&I Income Bond;
(d) “Bond holder” means a person in whose name a Bond is registered on the National Savings Stock Register;
(e) “Director” means the Director of Savings;
(f) “electronic transfer” means payments by BACS, including under a standing order (unless the context requires otherwise);
(g) “NS&I” means National Savings and Investments;
(h) “prospective user” means a person described in paragraph 85 who is entitled to become registered as a “registered user”;
(i) “registered user” means a person who has registered to use the Service;
(j) “Service” means the telephone and internet services provided by NS&I for the purposes of purchasing and managing Bonds as described in paragraph 85.

4. For the purposes of these terms and conditions, any references to “we”, “us” or “our” are references to the Director or those acting under the Director’s authority.

Interest
5. All deposits accepted (see paragraph 28) will earn interest at a variable rate. The rate applicable to a particular Bond at any time may depend on the balance of that Bond. Both the rates, and the balances required to earn them, if applicable, may be changed from time to time.

6. The current rate(s) and the balance(s) required to earn them, if applicable, and notice of changes will be available:

  • on the NS&I website;

  • in our Interest Rates leaflet available from us;

  • in the London, Edinburgh and Belfast Gazettes; and

  • directly from us over the phone.


7.
The Treasury may change the interest rate(s) which apply to your Bond from time to time. This may be for any of the following reasons:
(a) to enable us to respond proportionately to a change in the Bank of England’s base rate or any other publicly listed market rate;
(b) to enable us to respond proportionately to changes in the interest rates paid or charged by other banks and financial institutions;
(c) to reflect changes in the costs we reasonably incur in providing your Bond;
(d) to reflect changes in the law or a decision by an ombudsman;
(e) to enable us to meet changed regulatory requirements;
(f) to reflect changes in any codes of practice to which we subscribe; or
(g) for any other reason that the Treasury considers necessary.

8. We will give you a reasonable period of personal notice if the Treasury make a material change to the applicable interest rate(s) which is to your disadvantage. Whether the change is material will be determined by reference to the size of the balance of your Bond and the size of the change to the interest rate(s).

9. Interest is paid monthly in arrears and is earned on a daily basis on the closing balance for each day. The closing balance on any particular day will include all deposits dated that day (see paragraphs 29, 46 and 49) less any withdrawals dated for that day (see paragraphs 62 and 64). Interest is earned at 1/365th of the annual interest rate for each day. This includes the day on which the Bond is purchased (see paragraph 29) but not the day the Bond is cashed in.

10. Subject to paragraph 12, interest is paid by electronic transfer to the Bond holder’s nominated account on the 5th day of each month (“an interest payment date”). If that day falls on a day which is not a banking day your nominated account may not be credited with interest until the next banking day.

11. If we receive an application to invest on or after the 20th of any month it may not be possible to make the first interest payment on the 5th day of the following month. In this case we will pay all the interest your holding has earned from the date of investment (see paragraph 29) on the next interest payment date.

12. The Treasury may from time to time change the intervals at which interest is paid, and the day of the month on which it is paid (see paragraph 10), upon giving notice in the London, Edinburgh and Belfast Gazettes, or in any other manner which they think appropriate. In doing this, the Treasury may specify values above or below which any change will apply.

13. Interest is paid monthly by electronic transfer to a UK bank account (including a National Savings Investment Account or Direct Saver) or building society account in the name of the Bond holder. The Director intends to use BACS for this purpose so the account nominated on the application must be capable of receiving payments by this method. Any applications to invest that do not contain nominated bank account details will be rejected.

Tax
14. Interest will be paid without deduction of tax. However it is subject to UK Income Tax so Bond holders may need to declare their interest to HM Revenue & Customs, depending on their circumstances.

Who may purchase and hold Bonds
15. Bonds may be purchased in accordance with paragraphs 16 to 19, and held in accordance with paragraphs 16 to 21, unless a limitation applies (see paragraph 22).

16. Individuals Individuals of at least 16 years of age may, for their own benefit, purchase and hold Bonds:
(a) in their own name; or
(b) jointly with one other individual.

17. Attorneys An individual of at least 16 years of age may also purchase Bonds in the name of another such individual where acting under a valid power of attorney.

18. Trustees A person who holds money in trust for one or more individuals (whether they are an individual or a corporate trustee) may purchase and hold Bonds in their capacity as a trustee either:
(a) by themselves; or
(b) jointly with one or more other trustees.

19. Deputies A person who is legally entitled to make investments on behalf of a person of at least 16 years of age who lacks capacity may purchase Bonds on behalf of, and in the name of, that individual.

20. Children Children under the age of 16 who held a Bond up to and including 5 April 2013 may continue to hold and make subsequent deposits to the Bond.

21. Others A body, whether it is incorporated or is unincorporated that held a Bond up to and including 1 January 1990 may continue to hold and make subsequent deposits to the Bond.

22. General limitations Bonds cannot be purchased by:
(a) a person who is either a US citizen and/or a US resident for tax purposes;
(b) a person who is an undischarged bankrupt;
(c) a person who is 16 years of age or older and operates under a legal disability; or
(d) one person on behalf of another, unless the application is made in accordance with paragraphs 16(b), 17 and 19.

How to purchase Bonds
23. Subject to paragraph 24, an application to purchase Bonds can be made:
(a) via the internet;
(b) by telephone; or
(c) by post to NS&I.

24. Only applications to purchase made by individuals on their own behalf can be made via the internet and by telephone. Applications made by attorneys, trustees and deputies can only be made by post.

25. Where an applicant applies by telephone or via the internet, the Bonds must be purchased using a debit card in the name of the proposed Bond holder (or in the case of joint applicants, in the name of either or both of the proposed Bond holders) issued by a UK bank or building society.

26. Where an applicant makes an application via the internet or by telephone and this is the first application, the applicant (or in the case of joint applicants, both of those applicants) must confirm the application by signing and returning a confirmation form we will send to them by post. The form will specify the time within which the signed form must be returned to us. If the form is not received by us within the specified time we will not be able to process the application. If this is the case any money paid to us will be refunded to the relevant debit card or by issuing a crossed warrant (like a cheque). However, we reserve the right to use a different method of payment if necessary. No interest will be earned or paid for the intervening period.

27. When an application is made by post the Bond must be purchased using a cheque drawn on a UK bank or building society account held by the proposed Bond holder, or applicant (or in the case of joint proposed Bond holders or applicants, in the name of any one or more of them), where different, or by a building society branch cheque or banker’s draft.

28. In all cases, an application to purchase is subject to acceptance by us.

29. Once an application to purchase has been accepted, the date of purchase will be the date that the completed application to purchase was received by us. For these purposes:
(a) an application to purchase using a debit card for payment will not be considered complete until we have received the authorisation of payment from the debit card issuer; and
(b) we accept no responsibility for applications which are lost in the post or affected by postal delays, and proof of postage will not be accepted as proof of delivery.

30. Once an application has been accepted, the Bond holder will receive a confirmation showing the amount and date of purchase.

Evidence of identity
31. Under legislation relating to money laundering we are required to verify the identity and address of our customers before we can accept an application to invest. To do this we may make electronic checks using data from a third party including information from the Electoral Register. In accepting the terms and conditions the applicant confirms that they, and anyone else named on the application, are aware that their identity and address will be checked.

32. We may also request documentary evidence of identity and address. The request for evidence of identity will specify the time within which the evidence must be returned to us. If the evidence is not received by us within the specified time we will not be able to process the application. No responsibility will be accepted for documents which are lost in the post, or affected by postal delays. Proof of posting will not be accepted as proof of delivery.

33. If we are unable to process an application due to lack of evidence of identity, the application will be cancelled from inception and any money paid to us will be refunded to the relevant debit card or by issuing a crossed warrant (like a cheque) to the purchaser named on the application form. However, we reserve the right to use another method for payment if necessary. No interest will be earned or paid for the intervening period.

Cooling off
34. If an applicant is not happy with their purchase of a Bond they have 14 days from the date the confirmation of purchase was received within which to cancel the Bond. To cancel the Bond the applicant must notify us in writing, by post, by fax, by email, or by telephone, using the details at the end of these terms and conditions.

35. If an applicant cancels their Bond we will return all of the money and any interest it has earned. If an applicant does not cancel their Bond, these terms and conditions will apply until the Bond is repaid.

Purchase and holding limits
36. The minimum value Bond that may be purchased is £500.

37. An applicant may not apply to purchase a Bond if immediately after that purchase the Bond holder would hold more than £1,000,000 in Bonds.

38. Where a Bond is held jointly, each Bond holder will be treated as holding an equal share of that Bond. For example, if two Bond holders hold a £1,500,000 Bond, they will each be treated as holding £750,000. This will mean that each can purchase up to another £250,000 of Bonds. This paragraph does not apply to applications made by a person applying to purchase as a trustee (see paragraph 18), nor do any Bonds held by a person as a trustee count towards their holding for the purpose of this paragraph.

39. An applicant who is acting as a trustee may not apply to purchase a Bond if immediately after that purchase they would hold more than £1,000,000 of Bonds under that trust.

40. Where a Bond is held by trustees jointly, each will be treated as holding the full value of that Bond. For example, if two trustees hold £1,000,000 of Bonds jointly, they will each be treated as holding the full £1,000,000. This will mean that neither of those trustees will be permitted to purchase further Bonds under that trust.

41. If a person inherits a Bond and an application is made to transfer that Bond into that person’s name, that application will not be considered to be an application to purchase and will not be subject to the holding limits in paragraphs 37 and 38. However, the inherited Bond will count towards that person’s holding for the purposes of determining whether that person can purchase further Bonds or make further deposits into any existing Bonds. For example, if a person has £750,000 of Bonds, and inherits a further £300,000 of Bonds, that person will be able to hold the £300,000 of inherited Bonds, but will not then be able to purchase further Bonds or make further deposits into any existing Bonds that they hold.

Deposits into your Bond – limits
Minimum deposit
42. The minimum amount that may be deposited at any one time is £500.

43. Subject to the maximum investment limits (see paragraphs 37 and 38), and any limitations imposed by your or our banking service provider, a deposit may be made for any amount equal to or more than the minimum.

Maximum deposit
44. Once a maximum investment limit (see paragraphs 37 and 38) has been reached, no further deposits will be permitted. However, it will remain possible to receive the value of a Bond of another Bond holder who has died.

Deposits into your Bond – procedure
45. All deposits into the Bond must be in £ sterling, drawn on a bank in the UK.

Deposits by post
46. You may deposit cheques, bankers’ drafts and postal orders by post. You will need to send the payment, together with the deposit form, available from us and online at nsandi.com, by post to us. For interest purposes the date of deposit will be the date your payment and form are received by us.

47. Deposits sent to us by post will not be accepted without a completed deposit form. Cheques, bankers’ draft and postal orders received without a fully completed deposit form will not be credited to your Bond, and will be returned to you where possible.

48. The amount of any cheque deposit will be available for withdrawal from the seventh banking day. For example if we receive your cheque and deposit form on a Monday, your payment will be cleared on the Tuesday of the following week. Allow one additional day for each English bank holiday. Clearance times on other types of deposits may vary.

Deposits using your debit card – by telephone and internet
49. For interest purposes, the date of deposit will be the date on which we receive authorisation of your debit card payment from the card issuer. The amount of the deposit will be available for withdrawal from the seventh banking day. For example, if we receive your debit card authorisation on a Monday, your payment will be cleared on the Tuesday of the following week. Allow one additional day for each English bank holiday.

Cashing in
50. Bonds may be cashed in at any time in accordance with paragraphs 51 to 55 inclusive.

51. Bonds purchased by cheque or debit card can only be cashed in after payment has cleared. However, in certain circumstances, we may allow Bonds purchased by debit card to be encashed before the payment has cleared (see paragraph 49). If so allowed, we will repay the sum requested to the debit card from which the payment was made.

52. For internet or telephone applications to cash in made via the Service, repayment will be made by electronic transfer to the nominated bank account (see paragraph 57).

53. For postal applications to cash in, repayment will normally be made by electronic transfer to the nominated bank account. However in certain circumstances we may accept requests for repayment to be made by crossed warrant (see paragraphs 64 and 65).

54. Partial encashments Bond holders may cash in part of a Bond.

55. Where a Bond holder is requesting a partial encashment, the minimum amount that can be cashed in is £500 and at least £500 must remain invested in the Bond.

56. In order to ensure prompt payment of monthly interest, we start to process interest payments a few days before the interest payment date, proceeding on the basis that the Bond holder will continue to hold the full value of the Bond for the remainder of the month. This means that if the Bond holder requests a partial repayment after we have started to process their monthly interest payment, but before the interest payment date, the Bond holder may receive an overpayment of interest. Where this occurs, we will deduct the overpayment from the amount of interest received in the following month.

Repayments by electronic transfer
57. Where repayment is to be made by electronic transfer, repayments will normally be made to a UK bank account (including an NS&I Direct Saver) or building society account in the Bond holder’s name. The account to receive such repayments must be nominated at the time of the application to purchase. Any applications to invest that do not contain nominated bank account details will be rejected.

58. We intend to use BACS as the means of making these electronic transfers (although we reserve the right to use a different means if necessary).

59. The nominated bank or building society account must be capable of receiving payments via BACS.

60. For telephone or internet applications to cash in, we will normally initiate the electronic transfer within three banking days of receiving instructions.

61. For postal applications to cash in, we will normally initiate the electronic transfer within five banking days of receiving instructions.

62. Once we have initiated the electronic transfer, the date of repayment, for the purposes of these terms and conditions, will be considered to be the date on which, in the normal course, the requested amount would be credited to the specified bank or building society account. In the case of BACS, this is normally two banking days after we initiate the transfer.

63. Where an electronic transfer is initiated properly we will not be liable for:
(a) any failure or delay of the receiving bank or building society in crediting the specified account; or
(b) any failure or delay in any part of the electronic process which is beyond our direct control
(including any failure which occurs because the specified account is incapable of receiving an electronic transfer).

Repayments by crossed warrant
64. In exceptional circumstances payment can, on request, be made by crossed warrant (like a cheque). In such cases the date a Bond is cashed in, will be taken to be the date on the warrant.

65. We will normally put the warrant in the post within five banking days of receiving the instructions to cash in.

Children
66. Children, who as of 5 April 2013 were under the age of 16 may continue to hold and make subsequent deposits to an existing Bond which was purchased on or before 5 April 2013.

67. Interest on a Bond held in the name of a child under 16 years of age, or by two such children jointly, will be paid into a UK bank account (including an NS&I Investment Account or Direct Saver) or building society account in the name of the child (or children) or in the name of a person who satisfies us that he or she is a proper person to receive payment. This will normally be the person with legal parental responsibility for the child(ren).

68. We will repay a Bond held in the name of a child(ren) under 16 years of age to any person (on their instructions) who satisfies us that he or she is a proper person to receive payment. Normally that is the person with legal parental responsibility for the child(ren).

69. Once a child has reached the age of 16 years, repayment will normally only be made to the child, on his or her instructions.

70. Where a Bond was opened for a child on or before 5 April 2013, and the child is at least 7 years of age on 5 April 2013, paragraph 68 will not apply and the child will continue to manage the Bond as if they were 16 years of age. Although not required to do so, a child holding such a Bond will be permitted to request that payment be made to a person responsible for their welfare.

Transfers
71. A Bond, or part of a Bond, can only be transferred with the consent of the Director. The Director will only give consent in exceptional circumstances. Generally, the Director will give consent in the case of the inheritance of Bonds on the death of a Bond holder, but not to any transfer which is by way of a sale.

Repayment of Bonds by NS&I
72. We can repay Bonds immediately, without needing an application to cash in, if:
(a) we reasonably think any of the persons named in the application to purchase have provided false information;
(b) we reasonably suspect that the Bond is being held for an illegal purpose;
(c) the applicant who applied to purchase the Bond was not entitled to purchase it, or the Bond holder is not entitled to hold it;
(d) the Bond holder’s holding exceeds the maximum allowable (see paragraph 37);
(e) the Bond holder fails to comply, in a material manner, with the terms and conditions for holding the Bond;
(f) we have any other valid reason to do so.

Giving us instructions
73. Instructions can be given:
(a) via the internet (where a holder is registered for the Service);
(b) by telephone (where a holder is registered for the Service);
(c) by post by completing the relevant forms (available from us) and returning them to us.

74. Bond holders cannot change or cancel payment instructions that they have given because we start processing them as soon as we receive them.

75. We may refuse to act on instructions if:
(a) we reasonably believe that they were given by a person who was not entitled to give us instructions;
(b) we reasonably suspect fraudulent activity in relation to the Bond;
(c) the instructions are unclear, incomplete or not in the required form;
(d) in carrying out the instructions, we might thereby act contrary to a law, regulation, code or other duty which applies to us;
(e) it would cause any limit or restriction which applies to a Bond holding to be exceeded; or
(f) we have any other valid reason for not acting on the instructions.

76. If we refuse to act on instructions we will notify the Bond holder and, if possible, give our reasons for doing so. Bond holders can obtain information about the refusal and, where appropriate, our reason for refusing, along with information on how to correct any errors that led to the refusal, by contacting us using the details at the end of these terms and conditions (unless we are prevented by legal obligations, or circumstances beyond our control, from providing this information).

Joint investments
77. For all Bonds that are held jointly:
(a) The Bond is the joint property of all joint Bond holders.
(b) In the event of the death of one of the joint Bond holders, full ownership will pass to the survivor(s) who will be entitled to manage the Bond on the same terms.
(c) All correspondence including statements and transaction records (see paragraphs 80 to 84) will be sent to the Bond holder named first on the application to purchase the Bond.
(d) Upon application of all of the surviving Bond holders, we may remove the name of any person from the title of the Bond.

78. For Bonds purchased jointly by Bond holders who are not acting as trustees:
(a) Where the Bond holders have registered to use the Service in respect of that Bond, they will each have a separate password and separate security information.
(b) We will accept instructions, including instructions to cash in the Bond, from either Bond holder acting independently.
(c) If either joint Bond holder informs us of a dispute between the Bond holders, or requires that instructions should only be accepted with the assent of both Bond holders, neither Bond holder may use the Service (which depends on us being able to accept instructions from either Bond holder). From that point onwards, instructions will need to be given by post and be signed by both Bond holders. We may permit joint Bond holders to use the Service again if satisfied that both Bond holders have authorised us to accept instructions from either one of them, acting independently.
For Bonds purchased up to and including 5 April 2013, this paragraph does not apply unless the Bond holders have agreed to operate their Bond independently. If joint Bond holders wish to do this, they should contact us for more information.

79. Where Bonds have been purchased jointly by Bond holders who are acting as trustees, we will only accept instructions sent to us by post and which have been signed by all Bond holders.

Statements and transaction records
80. We will send you a statement annually showing all transactions for the previous year. The statement will include details of all transactions and monthly interest payments since the last annual statement or the date of investment if the Bond has been held for less than a year.

81. You can request, at any time, an interim statement of all transactions on your Bond. This statement will include all transactions since the last annual statement (see paragraph 80) or the date of investment if the Bond has been held for less than a year.

82. The Bond holder will receive a transaction record every time they make a deposit in accordance with paragraph 46 or a withdrawal. The transaction record will confirm the details of the transaction that has taken place and the value of the Bond immediately following that transaction.

83. When a Bond is repaid in full the Bond holder will receive a closing statement. The closing statement will include details of all transactions and interest paid since the last annual statement was issued (or since the date of investment if no annual statement has yet been issued in respect of the Bond (see paragraph 80)).

84. The Bond holder is responsible for checking the information we provide and must tell us as soon as possible if it includes something which appears to be wrong or if a repayment was not made in accordance with the instructions given.

Telephone and internet service
85. We offer the opportunity to purchase and manage Bonds via the telephone and/or internet, and to opt to receive paperless documents. The Service is offered to all Bond holders and, where a Bond holder lacks capacity or has created a valid power of attorney, a limited Service is offered to those entitled to manage their Bond (each a “prospective user”). To use the Service to both purchase and manage a Bond, a prospective user will need to register either by telephone or via the internet as part of their application to purchase. If a prospective user wants to register to use the Service to manage a Bond that they have already purchased, they will need to complete a registration form (available from us or to download from our website) and return it to us for processing. Deputies and attorneys can only register to use the limited Service by completing the registration form and returning it to us for processing.

86. If a prospective user registers as part of an application to purchase made over the internet, they will be asked to supply security information and choose a password. If the prospective user is an existing customer who has already registered to use the Service, they must use their existing security information and password to purchase and manage the relevant Bond (see paragraph 89).

87. If a prospective user registers as part of an application to purchase made by telephone, they will be asked to supply security information. After registration, we will send a temporary password to the registered user. Before the registered user can manage their Bond using the Service, they will need to change the temporary password to one of their own choosing. This temporary password will expire after 60 days so the registered user will need to change it before then. If they do not change their temporary password before it expires we will issue them with a new password when they next contact us. The new temporary password must be changed within 60 days.

88. We will use the password and security information to verify the identity of the person seeking access to the Service. If for any reason a registered user wishes to change their security information or password they can do so via the internet, or by calling us. We may ask for any change to be confirmed in writing.

89. Registered users must take reasonable precautions to prevent unauthorised use of the Service. They should not disclose any information which will give access to the Service to anyone other than us. They should not record their password or security information in any way that may result in them becoming known to another person.

90. Please note that after initial registration we will never contact registered users, or ask anyone to do so on our behalf, with a request to disclose security information in full. If a registered user receives any such request from anyone (even if they are using our name and logo and appear to be genuine) then it is likely to be fraudulent and security information should not be supplied under any circumstances. Registered users should report any such request to us immediately.

91. The Bond holder will be responsible for any instructions received by us between the time a registered user passes the security procedure until the time that registered user exits from the Service. Please note that this includes any input errors or instructions sent by someone other than the registered user, so registered users are asked not to leave the device they are using to access the Service unattended whilst logged on.

92. Please note that we are entitled to repay Bonds where instructions to cash in have been given through the Service, if particulars of the security information were correctly provided.

93. If a registered user has reason to suspect that their security information and/or password have become known to a third party, they should immediately notify us by telephone. We may ask for this to be confirmed in writing.

94. While we will make reasonable efforts to provide the Service, we will not be liable for any failure to provide the Service, in part or full, for any cause that is beyond our control. This includes, in particular, any suspension of the Service resulting from maintenance and upgrades to our systems or the systems of any party used to provide the Service.

95. We may, where we consider it is appropriate for the protection of Bond holders, suspend, withdraw or restrict the use of the Service or any part of the Service. We will inform Bond holders as soon as practicable if we take such action. We may also end the Service or any part of the Service at any time by giving registered users reasonable notice.

Liability
96. If a Bond holder tells us that an application to cash in was not authorised, we will carry out an investigation. As soon as we are reasonably satisfied that the application to cash in was unauthorised, we will, subject to paragraph 97, refund the amount repaid and return any relevant Bonds to the position they would have been in if the unauthorised repayment had not taken place. This means that, in addition to the amount of the unauthorised repayment, we will pay any interest on the amount incorrectly paid but we will have no further liability.

97. However, we will not give a refund if the Bond holder has acted fraudulently.

98. If a Bond holder asks us to make a repayment by electronic transfer and, after a reasonable period has elapsed, the bank or building society to which payment should have been made says that it did not receive the payment, we will (subject to paragraphs 99 and 100) refund the amount of the payment and return any relevant Bond to the position it would have been in if the payment had not been made.

99. We will not make a refund pursuant to paragraph 98 if there was a mistake in any of the details contained in the instructions to cash in. In such circumstances, we will, however, make reasonable efforts to recover the funds for the Bond holder.

100. We will not make a refund pursuant to paragraph 98 if we can show that the repayment was in fact received by the bank or building society to which repayment should have been made.

How we use your information

101. We may use any information provided to us to help us:
(a) manage Bonds;
(b) prevent and detect crime;
(c) understand our customers’ requirements; and
(d) develop and test products and services.

102. We treat all the information we hold concerning customers as private and confidential. We will not reveal any personal details or details concerning a customer’s investments to anyone not connected to NS&I, unless:
(a) the customer asks us to reveal the information or we have the customer’s permission to do so;
(b) we are required or permitted to do so by law;
(c) it is required by credit reference and fraud prevention agencies and other companies that provide a service to us or the customer; or
(d) there is a duty to the public to reveal the information.

103. When giving us information about another person, the person providing the information is required to confirm that they have been appointed to act on behalf of that other person. This includes providing consent to process that other person’s data as set out in these terms and conditions.

104. We may monitor or record telephone calls for training, quality assurance and other business purposes.

105. The NS&I website uses cookies to collect anonymous data in order to administer the website. It is possible to set internet browser software so as to disable the use of cookies. Please note however that application forms and other processes require the use of cookies for correct operation.

106. From time to time we may change the way we use customer information. Where we believe that customers may not reasonably expect such a change we will notify them personally. If customers do not object to the change within 60 days, we will deem them to have consented to that change.

107. Customer information will be held by us in both paper form and on our IT systems and will be kept after Bonds have been repaid in full, in line with our retention procedures. Customers wishing to obtain a copy of the information we hold about them can make a Data Subject Access Request under the Data Protection Act and send it to: The Data Protection Officer, National Savings and Investments, 1 Drummond Gate, London SW1V 2QX - make sure the request is signed. A Data Subject Access Request form is available to print off and complete in the 'Privacy' section of the NS&I website. Alternatively, customers can write to the Data Protection Officer giving us their full name, current address and any previous addresses, which savings or investments they have with us and the account, holder's or customer numbers. There may be a small charge for this service - if so, we will make this clear.

108. We would like to keep customers up to date with information about our products and services which we think might interest them. If a customer does not want to receive this information they can contact us using the details at the end of these terms and conditions.

How to notify us of changes to personal details
109. To enable us to manage Bonds effectively and to be able to contact Bond holders when necessary we ask that they let us know, as soon as possible, of any changes in name, address, telephone number or email address. Bond holders should also ensure that their nominated bank account details are kept up to date. If they are registered to use the Service they should notify us of any such changes by telephone, or update their details on the internet. Otherwise they should write to us at the address at the end of these terms and conditions.

Complaints
110. If we make a mistake we’ll aim to put things right quickly and without fuss, and we have a procedure designed to resolve complaints effectively and fairly. Complaints can be made in writing to the Customer Service Team at the address at the end of these terms and conditions, by calling us free on 0800 092 1286 (calls from mobiles and some landline providers may not be free), or by visiting nsandi.com, clicking ‘Contact us’, clicking on the ‘Contact us online’ button in the ‘Email us’ section, and selecting ‘complaint’ in the ‘subject’ dropdown menu. A leaflet describing our complaints procedure is available on request or you can download one at nsandi.com, clicking ‘Why save with us’, clicking on ‘Our commitment’ and then clicking on the link under the heading ‘Not happy with our service?’.

111. If a customer feels that we have not resolved their complaint to their satisfaction, they may be able to refer it to the Financial Ombudsman Service (the “FOS”) at South Quay Plaza, 183 Marsh Wall, London E14 9SR (Tel 0800 023 4567). The FOS is an organisation set up by law to give consumers a free and independent service for resolving disputes.

Changes to these terms and conditions
112. The Treasury reserves the right to amend these terms and conditions at any time.

113. Typically, changes will be made pursuant to paragraph 112:
(a) to make the terms and conditions clearer or more favourable to the Bond holder;
(b) to reflect changes in the Government’s funding requirements;
(c) to reflect changes in the law or a decision by an ombudsman;
(d) to enable us to meet changed regulatory requirements;
(e) to reflect changes in any codes of practice to which we subscribe;
(f) to reflect changes in the general practice of banks and other organisations offering similar products or services; or
(g) to allow for new technology systems, methods of operation, security or facilities.

114. If the change is to the Bond holder’s detriment we will let them know personally at least 30 days before the change. If this is the case the Bond holder can switch to another NS&I product or cash in their Bond without notice or penalty within 60 days of us telling you.

115. For any other changes we will let customers know by updating our website and, if appropriate, publish a notice in a range of national newspapers.

Regulations

116. As at 1 April 2014, The National Savings Stock Register Regulations 1976 (Statutory Instrument Number 1976/2012) have been amended by the following Statutory Instruments:

1981/485 1984/600 1987/1635 1988/1355 1989/2046
1993/3131 1997/1864 1998/1446 1999/2771 2001/2616
2004/1662 2005/2114 2007/1898 2009/1263 2010/291
2012/1877


117. The Statutory Instruments listed in paragraph 116 can be accessed at www.legislation.gov.uk.

Law and jurisdiction
118. These terms and conditions and any agreement made on the basis of them will be governed by and interpreted in accordance with English law.

119. In the event of the death of a Bond holder, the Director reserves the right to make any payment in respect of the Bond in accordance with the law of the place in which the Bond holder resided, or if different, was domiciled at the date of their death.

120. Subject to paragraphs 121 and 122, the courts of England are to have exclusive jurisdiction to settle any dispute (including claims for set off and counterclaims) which may arise in connection with these terms and conditions or any agreement made on the basis of them and which, subject to the Regulations, falls to be determined by a court of law.

121. Where section 16 of the Civil Jurisdiction and Judgments Act 1982 applies the relevant court of law of the relevant part of the United Kingdom shall have jurisdiction to settle any such dispute.

122. Paragraphs 120 and 121 are included for the benefit of NS&I. Accordingly NS&I retains the right to bring proceedings in any other court which has jurisdiction to whose jurisdiction the holder irrevocably submits.

Income Bonds
National Savings and Investments
Glasgow
G58 1SB
Telephone 0500 007 007
Fax 0141 636 8744
Visit our website nsandi.com

1 April 2014

PLEASE KEEP FOR REFERENCE


Apply

Before you start

Make sure you've read all the information to ensure this investment is right for you. You'll also need to read and accept the terms and conditions before applying.


What you need before you apply

  1. Your debit card details
  2. Your nominated UK bank account details to receive your income payments and any withdrawals you make after your account is open
  3. Your telephone number (mobile preferred) in case we need to contact you for security reasons
  4. A valid email address , so we can send confirmation that we've received your application
  5. Your NS&I number and password , if you're already registered for our online and phone service

Payment details

We accept Maestro, Switch, Visa Debit or MasterCard Debit*. The debit card must be in your name issued by a UK bank . We'll start processing your payment as soon as we receive your card details, so please make sure you have enough money in your account when you apply. If you apply for a joint account, the debit card must be in the name of the first holder named on the application.

Transaction limits

The maximum investment online is £99,999, but some debit cards have lower limits on transaction sizes - please check with your card issuer. However, once your account is open, you will be able to make additional deposits by cheque or debit card.

Joint applications

If one applicant has already registered for our online and phone service they must be the first named holder on the joint application and log in to complete the application.


Because you will need to send us documents as proof of your identity and address, you can only apply by post. And if you live in the European Union, you’ll also need to send us your Tax Identification Number and date and place of birth. Call us on +44 1253 832007 for full details before you apply. Charges will be at the rate of your international phone provider.


You can apply by phone by calling us on 0500 007 007. Or you can apply by post by downloading an application form >


If you're applying on behalf of someone else in trust, or under a Power of Attorney or as a receiver, you will need to apply by post. Call us on 0500 007 007 and we'll send you the relevant application form.


If you want to add to an existing Income Bonds account, don't make a new application. If you've registered for our online and phone service, you can make a deposit to an existing Income Bonds account by logging in  or calling us. (But if you hold your Income Bonds account jointly with someone else, please read 'Managing joint accounts' first.)

Or you can complete a simple Income Bonds deposit form – if you haven't got one, you can download and print the form or call us and we'll send you one. Then post us your completed form with a cheque.

Not registered yet for our online and phone service yet? Find out how to register >


After you apply online, we will send you an email confirming that we've received your application. For both online and phone applications, we will send you a confirmation form to sign and return. We may also ask for proof of your identity and address , as well as for anyone else named on the application form.

We can only accept your application if we receive your signed form, and any proof of identity and address requested, within 30 days of the date you applied. So please make sure you reply in good time.

Once we've processed your application, we will send your welcome letter to confirm your investment. If you applied shortly before an interest payment date, you may not receive your first payment until the following interest payment date.


Are you investing in your sole name or jointly with someone else?


Have you ever held Income Bonds?


Have you already registered for NS&I's online and phone service?


Improved customer security

We have made some improvements to our online and phone security processes. Find out more >


Your information

It is important that you read and understand the section entitled 'How we use your information' in our terms and conditions.




*You will be asked to complete a Verified by Visa/MasterCard Secure Code box if using a Visa or MasterCard Debit card. Verified by Visa/MasterCard Secure Code helps protect you against unauthorised use of your card online by requiring you to enter a password each time you make a debit card payment.


Apply now  

Manage existing Bonds

Three easy ways to manage your Bonds

You can manage your Income Bonds account by post, online and by phone.

If you'd like to use our secure online and phone service, you'll need to register first. Once you're up and running, you'll be able to:

  • pay money into and take money out of your account
  • apply for other NS&I accounts and investments (when they’re on sale)
  • keep track of your money with NS&I
  • keep your details up to date including your address, email and nominated bank accounts
Find out more

Once your Income Bonds account is open, you can make further deposits at any time by posting us a cheque with a completed deposit form. Each deposit must be at least £500. And if you register for our online and phone service, you can pay money in by logging in or calling us.

Use our interest rate calculator to find out how much you could earn by investing more in Income Bonds.


You can take money out at any time with no notice period or penalty – just complete a cashing in form and post it to us, then we'll pay the money directly to your nominated bank account. The minimum that you can cash in is £500, and at least £500 must remain in your account to keep it open. And if you register for our online and phone service, you can cash in by logging in or calling us.


We'll send you a deposit form and a cashing in form after you've made your first investment. You can also download and print these forms here or call us and we'll post them to you.


Whenever you pay money in or take it out, we'll send you a transaction record to confirm your updated balance. We'll also send you a detailed annual statement in April each year, so that you'll have all your transactions for the year presented together in one document.


If you invested jointly on or after 6 April 2013, either of you can manage your Income Bonds account and take money out independently.

If you invested jointly before 6 April 2013, both of you will need to sign to authorise withdrawals or make any changes. If you want to manage your account online and by phone, you'll need to sign a form to give us authority for either investor to manage the account independently. Call us to find out more.


For any new investments in Income Bonds, investors must be aged at least 16. However, children under 16 with existing Income Bonds accounts can still keep them and continue to make deposits and withdrawals. For children aged under 7 at 6 April 2013, the parent or guardian will need to manage their account until they reach 16.


If you've registered to use our online and phone service, you can change your details using our online and phone service by logging in here or calling 0500 007 007 .

Or you can let us know the changes by post by writing to us >


You can close your Income Bonds account at any time for any reason, without a penalty. If your Income Bonds are held jointly, either account holder can close the account independently (unless you invested before 6 April 2013 and you haven't given us authority for either investor to manage the account independently).

If you want to close your account log in or call us if you're registered for our online and phone service. Or complete a cashing in form , indicating that you want to close the account, and post it to us.


Apply