Changes to NS&I Income Bonds

On 6 April 2013 we made some changes to how NS&I Income Bonds work. The changes are part of our plans to make our range of savings and investments simpler and more modern.

So what’s new?

Here’s a summary of what’s changed:

  • Rather than having two different interest rates depending on how much you invest, we’re now paying the single higher rate of interest to all investors – see current interest rates
  • Joint investors can combine their investment allowance, meaning customers can jointly invest up to £2 million
  • Trusts are no longer restricted to two beneficiaries
  • All interest payments and withdrawals are now made by electronic bank transfer (BACS)
  • New customers under the age of 16 years are no longer able to buy Income Bonds. Existing customers under the age of 16 can continue to deposit and withdraw into an existing Income Bonds account
  • Bond certificates will be replaced by a transaction record and the annual statement will now include transaction history as well as tax information
  • You can now manage your Income Bonds online and by phone (registration required) as well as by post.

If you have Income Bonds, your money remains 100% secure, backed by HM Treasury, and you will continue to receive your monthly income payments on the 5th of each month (or the next working day if the 5th falls on a weekend or bank holiday).

We’ll send a leaflet explaining the changes to all existing Income Bonds customers with their annual statement.

Find out more about Income Bonds and how to invest