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Press release
NATIONAL SAVINGS AND INVESTMENTS RATE CHANGES
26 July 2002
National Savings and Investments has introduced new issues of its fixed rate products (see Annex
A for details), with the exception of 2 and 5-year Index-linked Savings Certificates and 5-year Fixed
Interest Savings Certificates where the interest rates remain unchanged.
ENDS
Notes to Editors
1. Media Information
| Mark Brooks | 020 7348 9301 | mark.brooks@nsandi.com |
| Angela Metschke | 020 7348 9449 | angela.metschke@nsandi.com |
| Jonathan Akerman | 020 7348 9433 | jonathan.akerman@nsandi.com |
| Samantha Bennett | 020 7348 9654 | sam.bennett@nsandi.com |
| Fax | 020 7348 9755 |
| Out of hours | 077 7896 6387 | |
Annex A
New Issues of Fixed Rates - Available from 26 July 2001
| Gross Rates* | Rate pa (change in brackets) | AER** |
| 1-year Pensioners Guaranteed Income Bonds Series 11 | 3.75% (-0.60%) | 3.82% |
| 2-year Pensioners Guaranteed Income Bonds Series 17 | 4.05% (-0.50%) | 4.13% |
| 5-year Pensioners Guaranteed Income Bonds Series 26 | 4.50% (-0.40%) | 4.59% |
Capital Bonds - Series 7
Guaranteed compound rate over 5 years | 4.55% (-0.45%) | 4.55% |
| 1-year Fixed Rate Savings Bond - Issue 14 | | |
| Guaranteed rate for the first year | | |
| £50,000+ | 3.90% (-0.60%) | 3.90% |
| £20,000+ | 3.70% (-0.60%) | 3.70% |
| £500+ | 3.50% (-0.60%) | 3.50% |
| monthly interest option | | |
| £50,000+ | 3.80% (-0.60%) | 3.87% |
| £20,000+ | 3.60% (-0.60%) | 3.66% |
| £500+ | 3.40% (-0.60%) | 3.45% |
| 3-year Fixed Rate Savings Bond - Issue 7 | | |
| Guaranteed rate for the first 3 years | | |
| £50,000+ | 4.45% (-0.45%) | 4.45% |
| £20,000+ | 4.25% (-0.45%) | 4.25% |
| £500+ | 4.05% (-0.45%) | 4.05% |
| monthly interest option | | |
| £50,000+ | 4.35% (-0.40%) | 4.44% |
| £20,000+ | 4.15% (-0.45%) | 4.23% |
| £500+ | 3.95% (-0.45%) | 4.02% |
| 5-year Fixed Rate Savings Bond - Issue 5 | | |
| Guaranteed rate for the first 5 years | | |
| £50,000+ | 4.70% (-0.35%) | 4.70% |
| £20,000+ | 4.50% (-0.35%) | 4.50% |
| £500+ | 4.30% (-0.35%) | 4.30% |
| monthly interest option | | |
| £50,000+ | 4.60% (-0.30%) | 4.70% |
| £20,000+ | 4.40% (-0.35%) | 4.49% |
| £500+ | 4.20% (-0.35%) | 4.28% |
| Tax-free Rates*** | Rate pa (change in brackets) | AER** |
| Children's Bonus Bonds - Issue 4 | | |
| Guaranteed compound rate over 5 years (including 5th anniversary bonus) | 4.30% (-0.35%) | 4.30% |
| | Rate pa/AER** (change in brackets) | Equivalent grossed up rate for basic rate taxpayers**** | Equivalent grossed up rate for higher rate taxpayers**** |
2-year Fixed Interest Savings Certificates
13th Issue
Guaranteed compound rate over 2 years | 3.00% (-0.25%) | 3.75% | 5.00% |
* Gross means the taxable rate of interest without the deduction of UK Income Tax
** 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.
*** Tax-free means the return is exempt from UK Income Tax at all rates of taxation.
**** 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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