Media centre /
Press release
NATIONAL SAVINGS AND INVESTMENTS RATE CHANGE
25 April 2002
Following a reduction in the short term real rates in the money market, National Savings
and Investments has introduced Issue 12 of the two-year tax-free Index-linked
Savings Certificate (Index-linking +1.30% AER). This replaces Issue 11.
See
Annex A for full details on
all changes.
Notes to Editors
1. Customer information line: 0845 964
5000, all calls charged at local rates.
Annex A
New Fixed Rate
- Available
from 26 April 2002
|
Two-Year
Index-linked Savings Certificates* |
|
|
|
|
Rate pa/ AER*** (change in brackets) |
Equivalent
grossed up rate for basic rate taxpayers*** |
Equivalent
grossed up rate for higher rate taxpayers*** |
|
2-year Index-Linked Savings Certificates - 12th Issue. Guaranteed compound rate
over 2 years |
RPI + 1.30% (-0.35%) |
RPI + 1.63% |
RPI + 2.17% |
| *Tax-free means that the return is
exempt from UK Income Tax at all rates of taxation. |
| **AER stands for Annual Equivalent
Rate and enables the comparison of interest rates from different
financial institutions and across different products on a like-for-like
basis. It shows what the notional annual rate would be if interest was
compounded each time it was credited or paid out. Where interest is
credited once a year the rate quoted and the AER will be the same. |
| *** At current tax rates |
Media team
NS&I has a number of spokespeople available for interviews and our experienced radio team is available via our ISDN line: 020 7602 4522.
The numbers below are for media use only.
Customers
wishing to contact NS&I can find details here.
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