Deposit Bonds

Deposit bonds are similar to income bonds but the interest is not paid monthly. Instead it accumulates until the bond is cashed.

Each year the interest earned to date is credited and begins to earn interest itself. However, the interest is liable for tax each year, even though you do not withdraw it. The bonds are in units of £9 0 but there is minimum holding of £100. They can be cashed in multiples of £9 0 on three months' notice.

You can obtain the forms and addressed envelope to apply for bonds from a post office where you will also find downloads about them.


More on - Investment Account

or Ordinary Account

Investment Account

/investments/investment-account.php... see: Investment Account