Premium Bonds
1.00% annual prize fund rate
Invest from ￡25 to ￡50,000
Direct Saver
0.15%
Invest from ￡1 to ￡2 million
Investment Account
0.01%
Invest from ￡20 to ￡1 million
Income Bonds
An easy access savings account that pays your interest monthly, direct to your bank.
Essentials at a glance
- What's the interest rate?
- 0.01% gross/AER
- 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
Maybe not for you if …
- You've got less than ￡500 to invest
- You want a fixed rate of interest
Income Bond FAQs
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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.
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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:
Or send us a withdrawal form.
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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. You can find out more in our Help section.
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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.
Apply for Income Bonds
Please read the below Summary Box below before applying for this account.
Summary Box
- Account name
-
Income Bonds
- What's the interest rate?
-
0.01% 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?
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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?
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A ￡1,000 deposit would earn ￡0.12 interest after 12 months, if the interest rate stayed at 0.01% gross (the rate from 24 November 2020) during the 12 months.
The interest is paid out monthly so the balance would remain at ￡1,000.
We round each month’s interest up or down to the nearest penny. At the current rate, this means that balances of less than ￡646 will not receive an interest payment every month.
This is an illustration only, so it doesn’t take into account your individual circumstances.
It assumes that you don’t make anywithdrawals or additional deposits during the year.
- How do I open and manage my account?
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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, simply:
- Can you take money out?
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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
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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.
- Some definitions explained
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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.
Please make sure you’ve read our summary Box above and the customer agreement before applying.
Customer agreement (last updated on 24 November 2020)
Apply nowTop up your Income Bonds
If you already have an account with us, you can top it up whenever you like.
- Top up by bank transfer
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- Reference:
- Please enter your Income Bonds account number only (not your NS&I number) as your reference. This will make sure your payment reaches the right account. You can find your account number on your statement or by logging in online.
- Payee name:
- NS&I
- Account number:
- 11994808
- Sort code:
- 60 89 78
Please make sure you've set up your account before transferring money via your bank.
When you set up your payment, you may receive a message saying 'This account can't be checked' or something similar. This doesn't mean the details you are using are wrong but please check them carefully.
For more information on topping up by bank transfer see our FAQs
- Top up by debit card
Top up your Income Bonds using your debit card
Top up by debit card
Just give this info to your bank, telling them how much to transfer and how often. You can normally do this online, by phone or in a branch. All deposits must be at least ￡500, from a UK bank account in your own name.
Ready to apply?
Be sure to check our FAQs first, then we'll show you the Income Bonds summary box and customer agreement before you apply.
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