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Guaranteed Income Bonds

Like clockwork

Earn a guaranteed income with our fixed rate Bond

Guaranteed Income Bonds: facts and figures

  • Rate 1.45% gross/1.46% AER Issue 62
    2.15% gross/2.17% AER Issue 56
  • Term 1 year

    3 years
  • Tax Taxable, paid gross

    Taxable, paid gross

Suitable for savers who:

  • are happy to invest online
  • want a regular income from their investment
  • want to know exactly what return they’ll get
  • can leave their money invested for one year or three years
  • have £500 or more to invest

Not for savers who:

  • want to invest by phone or post
  • want their interest to build up so their investment grows in value
  • might need access to their money early

Investing in Guaranteed Income Bonds

Summary box

Account name

NS&I Guaranteed Income Bonds

What is the interest rate?

1-year term, Issue 62

1.45% gross/1.46% AER

3-year term, Issue 56

2.15% gross/2.17% AER

We calculate the interest daily and pay it to your bank account once a month.

Can NS&I change the interest rate?

You’ll receive the rate on offer at the time you invest, and that rate will be fixed for the length of your chosen term. We can change the fixed rates on offer at any time. Each time we change the rate on offer we release a new Issue of Bonds.

What would the estimated balance be at the end of the term based on a £1,000 deposit?

1-year term, Issue 62

A £1,000 deposit would earn £14.50 interest by the end of the 1-year term.

3-year term, Issue 56

A £1,000 deposit would earn £64.50 interest by the end of the 3-year term.

The interest is paid out monthly so the balance would remain at £1,000 at the end of each term.

These are illustrations only, so they don’t take into account your individual circumstances. They assume that you don’t make any withdrawals during the term.

How do I open and manage my account?

The Bonds are for customers aged 16 or over. You can invest in Bonds in your own name or jointly with one other person. You can also invest in trust for one or more individuals.

You can:

  • apply for your Guaranteed Income Bonds online only, but manage them online, by phone or by post
  • invest at least £500, paid by a debit card in your own name, issued by a UK bank
  • invest up to a total of £1 million per person (or £1 million per trust) per Issue

If you want to switch to Guaranteed Income Bonds from another NS&I account or investment:

Download a switching form

Call us

Can I withdraw money?

Yes, before the end of the term you can cash in all or part of your Bond online, by phone or by post with no notice. We will deduct a penalty equal to 90 days’ interest on the amount you cash in. This means that if you cash in within 90 days of buying your Bond, you’ll get back less than you invested. You need to keep a balance of at least £500 to keep your Bond open.

At the end of the term you can cash in with no penalty. We’ll contact you about a month before the end of the term to let you know the options available at that time.

Additional information

We add your interest without deducting any tax. However, the interest is taxable so it will count towards your Personal Savings Allowance.

Find out more about tax and savings

We’ll send you a statement in April each year, showing the interest you’ve earned and any withdrawals you might have made. You can choose to receive your statements electronically or by post.

Definitions

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

AER (Annual Equivalent Rate) illustrates what the annual rate of interest would be if the interest was compounded each time it was paid.

  • Ready to apply?

    Read the brochure with terms and conditions before you apply

    We last updated the terms and conditions on 1 December 2017.

    Apply online

    We can only accept individual transactions up to £99,999 online, but your debit card issuer may have a lower limit. You can however buy more than one Bond online. If you want to invest more than £99,999 into a single Bond, please call us to discuss your options.

    Once you have completed your online application, we’ll send you an email receipt. When we’ve accepted your application, we’ll send another email to confirm your investment.

    Applying on behalf of someone else?

    Want to apply on behalf of someone else under a Power of Attorney or as a Deputy or Receiver?

    Download an Attorney/Deputy application form

    Applying in trust?

    Call us for a trustee application form

    Call us

Managing your Bonds

Managing your Bonds

You can log in or call us at any time to check the balance or cash in the Bond.

Shortly after the end of each tax year we’ll send you a statement showing the interest earned and the value of your Bond.

  • What happens at the end of a term?

    Around a month before the end of your chosen term, we’ll contact you to explain the options available at that time.

    Don’t forget to let us know of any change of address or contact details so we can get in touch.

    How do I change my address and other details?

    Interest rates for renewing a maturing Bond

    These are the rates currently available for renewing a maturing Bond:

    Issue Term Effective from Interest rate

    Issue 62

    1-year

    1 December 2017

    1.45% gross

    1.46% AER

    Issue 55

    2-year

    20 November 2017

    1.65% gross

    1.66% AER

    Issue 56

    3-year

    1 December 2017

    2.15% gross

    2.17% AER

    Issue 51

    5-year

    20 November 2017

    2.20% gross

    2.22% AER

    Definitions

    AER (Annual Equivalent Rate) illustrates what the annual rate of interest would be if the interest was compounded each time it was paid.

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

  • Cashing in

    You can cash in your Bond at the end of your chosen term with no penalty.

    You can also cash in before that, but we will deduct a penalty from your payment equivalent to 90 days’ interest on the amount cashed in. Bear in mind that if you cash in all of your Bond within 90 days of investing, you will get back less than you invested.

    When you cash in part of a Bond, at least £500 must remain in the Bond to keep it open.

    How to cash in

    Log in or call us at any time with your NS&I number and password to hand.

    Log in

    Call us

    Or complete a cashing in form and send it to us.

    How long will it take?

    When you cash in online or by phone, we’ll send your payment within three working days of receiving your instructions.

    When you do this by post, we’ll send your payment within five working days.

Your questions answered

Your questions answered


How long will these Issues of Guaranteed Income Bonds be on sale for?

There’s no set period – the Issues could be withdrawn at any time.


Why is this investment online only?

These Issues of our Guaranteed Income Bonds are only available to buy through our website, which will give customers a simple and straightforward way to invest. They are only suitable for customers who are happy to apply for their investment online. Once you have bought your Bond, you will be able to manage it online, by phone or by post.

If you’re unable to invest online due to exceptional circumstances, please call us to discuss your options.

Call us


How do I switch from another NS&I account into Guaranteed Growth Bonds?

If you want to switch to Guaranteed Income Bonds from your NS&I Direct Saver, you can do this online. To switch from another NS&I account or investment:

Download a switching form


I’m having problems logging in to invest – what shall I do?

Read our ‘Problems logging in?’ page


How will I know that my online application has gone through?

We’ll email you to confirm we have received your application. We may need to contact you again before we accept your application, for example if we need to ask for evidence of your identity and address.


How long does it take to receive confirmation of my investment?

We’ll send you an email receipt for your application immediately following your online application. It then normally takes 24 hours to process and accept your application, although it can take longer if we need to ask you to send us documents to confirm your identity and address. Once we’ve accepted your application, we’ll send you an email and secure message to confirm your investment. You can then log in with your NS&I number and password to view the details of your investment.


I haven’t received acknowledgment of my application by email. What should I do?

If you haven’t received this within 24 hours of applying, please check your spam folder. Make sure you add our email address to your safe senders list: outgoing@nsandi.com

If you still haven’t received it, please contact us.

Contact us


How do I manage my Bond once my application has been accepted?

You can log in at any time to view and manage your investment – it’s quick, easy and secure. Remember to have your NS&I number and password to hand. You can also call us or give us instructions by post.

Log in

Apply now