PURPOSE: To obtain a method of manufacturing a small coil component which is simple in structure and small in number of components, wherein lead terminals and a magnetic core can be accurately and easily positioned and fixed.

CONSTITUTION: Lead pieces 9 are so bent as to enable the fixing plates 8 and 8 of a pair of lead terminals 71 and 72 provided to a lead frame 2 in one piece to confront each other as separate by a distance equal to that between the outer surfaces of flanges 4 and 4 of a magnetic core 1, the magnetic core 1 is inserted between the fixing plates 8 and 8 of the lead terminals 71 and 72 as placed on a connecting piece 6 and bonded to the fixing plates 8 and 8. The lead terminals 71 and 72 are cut off from a belt-like piece 5, and a winding is wound on the magnetic core 1.