Income Bonds

Essentials at a glance

What's the interest rate?

3.26% gross/3.30% AER, variable (until 11 February 2026)

3.01% gross/3.05% AER, variable (from 12 February 2026)

Can you take money out?

Yes: no notice and no penalty

Will you pay tax?

Yes: tax on your gross interest

What's the min. to pay in?

£500

What's the max. to pay in?

£1 million per person

Great for you if …

• You want your interest paid out every month
• You want to add to your savings pot as you go
• You need easy access to your money

Not for you if …

• You've got less than £500 to invest
• You want a fixed rate of interest

Income Bond FAQs

• Why hasn’t my balance updated?

  If you opened your account by debit card between the 20th of a month and the 5th of the following month, your deposit won’t show in your balance until the next banking day after the 5th. This is because we use this period to start calculating and preparing all the monthly interest payments.

  You will, however, be able to see your deposit in the ‘Pending transactions’ section of your online account.

  Need more info? Find out how to check if we’ve received your money.

  Checking a payment has been received

• How can I take money out?

  We calculate your monthly interest between the 20th and 5th of each month, so top-ups made during this period may not show in your account until the 6th. You’ll still be able to withdraw from your available balance during this time.

  The minimum you can take out is £500. At least £500 must stay in your account to keep it open.

  To take money out, you can:

  Log in 

  Call us

  Not registered? You can also cash in Income Bonds online without having to create an account.

  Cash in my Income Bonds 

  You’ll need your NS&I or account number and bank account details to hand.

  Or send us a withdrawal form.

  Print and complete a withdrawal form

  Find out how long it takes to receive your payment

• Can I move money from another NS&I account to Income Bonds?

  Yes! Just print and complete the Switch to Income Bonds form, post it to us and we’ll get it sorted for you.

  Switch to Income Bonds 
  Only use if switching from another NS&I account or Investment

• Will I have to pay tax on my savings?

  Each year, we’ll send you a statement that sets out how much interest you’ve earned.

  The interest you earn on most savings will count towards your taxable income. But this doesn’t mean you’ll have to pay tax on it. It all depends how much interest you earn in total and what rate of tax you pay.

  Each year, we’ll send you a statement that sets out how much interest you’ve earned.

  You can find out more in our Help section.

  Paying tax on your savings

• How do I invest jointly?

  We’ll ask you as part of your application if you’d like to save with someone else. You’ll each get your own login details so you can manage your account.

• 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 the customer agreement (terms and conditions) for more details. When the rate changes, we’ll update our website and literature as soon as we can. If the rate goes down we’ll also contact you personally in advance to let you know.