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Income Bonds

Nice little earner

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

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

Account name

NS&I Income Bonds

What is the interest rate?

1.00% gross/AER

We calculate the interest daily and add it to your bank account on the 5th of each month or the next working day if the 5th is a weekend or bank holiday.

Can NS&I change the interest rate?

Yes - the rate is variable so we can change it up or down from time to time, for example when the Bank of England base rate changes or when rates in the general savings market change. See paragraph 7 of the terms and conditions for more details.

We’ll give advance notice of any rate changes by publishing adverts in a range of newspapers and by updating our website. When the rate is going down, we’ll also contact you personally in advance to let you know.

What would the estimated balance be after 12 months based on a £1,000 deposit?

A £1,000 deposit would earn £10.00 interest after 12 months, if the current interest rate stayed the same during the 12 months. The interest is paid out monthly so the balance would remain at £1,000.

This is an illustration only, so it doesn’t take into account your individual circumstances. It assumes that you don’t make any withdrawals or additional deposits during the year.

How do I open and manage my account?

Our Income Bonds account is for customers aged 16 or over. You can open an account in your own name or jointly with one other person. You can also invest in trust for someone else.

You can:

  • apply for, and manage, an Income Bonds account online, by phone or by post
  • open an account with at least £500, paid by a debit card or personal cheque drawn on a UK bank account in your name
  • hold up to a total of £1 million per person in Income Bonds accounts

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

Download an application form

Call us

Can I withdraw money?

Yes, you can take out money online, by phone or by post with no notice or penalty. The minimum withdrawal is £500 and you need to keep a balance of at least £500 to keep your account open.

Additional information

We pay 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 an electronic statement in April each year, showing all your transactions and interest. Or you can receive your statements by post if you prefer.


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. Where interest is paid annually, the quoted rate and the AER are the same.

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

Apply now Top up your account