Investment Account

Summary Box

Account name

Investment Account

What's the interest rate?

0.01% gross/AER

We calculate the interest daily and add it to your account once a year on 1 January.

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.

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 be worth £1,000.10 after 12 months, if the interest rate stayed at 0.01% gross/AER (the rate from 24 November 2020) during the 12 months.

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 Investment Account is for customers aged 16 or over. You can open an account in your own name or jointly with one other person. An account can also be opened for a child under 16 by their parent, guardian, grandparent. You can also invest in trust for someone else.

You can:

• Apply for, and manage, an Investment Account by post only
• Open an account with at least £20, paid by personal cheque drawn on a UK bank account in your name
• Hold up to a total of £1 million per person in Investment Accounts

If you want to switch to Income Bonds from another NS&I account, simply:

Download an application form

Download an application form for under 16s

Call us

Can you take money out?

Yes, you can take out money by post with no notice or penalty. You just need to keep a balance of at least £1 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 a statement in January each year, showing all your transactions and interest.

Some definitions explained

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.