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Press release
NATIONAL SAVINGS AND INVESTMENTS RATE CHANGES
03 October 2002
National Savings and Investments (NS&I) has introduced new issues of its fixed rate products (see Annex A for details).
These new issues have been introduced following further falls in yields in the market generally of up to 0.30 per cent since National Savings and Investments last reviewed its rates in August 2002.
ENDS
Notes to Editors
Media Information
| Mark Brooks | 020 7348 9301 | mark.brooks@nsandi.com |
| Jonathan Akerman | 020 7348 9433 | jonathan.akerman@nsandi.com |
| Samantha Bennett | 020 7348 9654 | samantha.bennett@nsandi.com |
| Fax | 020 7348 9755 | samantha.bennett@nsandi.com |
| Out of hours | 07778 966387 | samantha.bennett@nsandi.com |
Annex A
New Issues of Fixed Rates
Available from 4 October 2002
| Gross Rates* | Rate pa (change in brackets) | AER** |
|---|
| 1-year Pensioners Guaranteed Income Bonds Series 13 | 3.25% (-0.15%) | 3.30% |
| 2-year Pensioners Guaranteed Income Bonds Series 19 | 3.45% (-0.25%) | 3.51% |
| 5-year Pensioners Guaranteed Income Bonds Series 28 | 3.90% (-0.30%) | 3.97% |
| 1-year Fixed Rate Savings Bond - Issue 16 | | |
| | | |
| £50,000+ | 3.35% (-0.15%) | 3.35% |
| £20,000+ | 3.15% (-0.15%) | 3.15% |
| £500+ | 3.00% (-0.10%) | 3.00% |
| monthly interest option | | |
| £50,000+ | 3.30% (-0.10%) | 3.35% |
| £20,000+ | 3.10% (-0.15%) | 3.14% |
| £500+ | 2.95% (-0.10%) | 2.99% |
| 3-year Fixed Rate Savings Bond - Issue 9 | | |
| | | |
| £50,000+ | 3.80% (-0.30%) | 3.80% |
| £20,000+ | 3.60% (-0.30%) | 3.60% |
| £500+ | 3.40% (-0.30%) | 3.40% |
| monthly interest option | | |
| £50,000+ | 3.70% (-0.30%) | 3.76% |
| £20,000+ | 3.50% (-0.30%) | 3.56% |
| £500+ | 3.35% (-0.25%) | 3.40% |
| 5-year Fixed Rate Savings Bond - Issue 7 | | |
| | | |
| £50,000+ | 4.05% (-0.30%) | 4.05% |
| £20,000+ | 3.85% (-0.30%) | 3.85% |
| £500+ | 3.70% (-0.30%) | 3.70% |
| monthly interest option | | |
| £50,000+ | 3.95% (-0.30%) | 4.02% |
| £20,000+ | 3.75% (-0.30%) | 3.82% |
| £500+ | 3.60% (-0.30%) | 3.66% |
Capital Bonds - Series 8
(see note 1 below) | 3.90% (-0.65%) | 3.90% |
| Tax-free Rates*** | Rate pa (change in brackets) | AER** |
|---|
| Children's Bonus Bonds - Issue 5 | | |
| Guaranteed compound rate over 5 years including fifth anniversary bonus (see note 1 below) | 3.65% (-0.65%) | 3.65% |
| | 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 15th Issue
Guaranteed compound rate over 2 years | 2.55% (-0.15%) | 3.19% | 4.25% |
5-year Fixed Interest Savings Certificates 65th Issue
Guaranteed compound rate over 5 years | 2.90% (-0.20%) | 3.63% | 4.83% |
2-year Index-linked Savings Certificates 13th Issue
Guaranteed compound rate over 2 years | Index-linking + 1.15% (-0.15%) | Index-linking + 1.44% | Index-linking + 1.92% |
5-year Index-linked Savings Certificates 24th Issue
Guaranteed compound rate over 5 years | Index-linking + 1.30% (-0.30%) | Index-linking + 1.63% | Index-linking + 2.17% |
1. Last rate change on Capital Bonds and Childrens Bonus Bonds: 26 July 2002. Last rate change on other fixed rate products: 23 August 2002.
* 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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