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
NS&I Income Bonds
What is the interest rate?
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 £7.50 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.
If you want to switch to Income Bonds from another NS&I account or investment:
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.
We pay your interest without deducting any tax. However, the interest is taxable so it will count towards your Personal Savings Allowance.
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.
We last updated the terms and conditions on 1 December 2016.
Living outside the UK?
Applying as a trustee
Call us for a trustee application form
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.