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Press release
NATIONAL SAVINGS AND INVESTMENTS RATE CHANGES
05 February 2003
National Savings and Investments (NS&I) has announced new issues of some of its fixed rate products and changes to some variable rates (see Annexes A and B for details).
These new rates have been introduced following further falls in rates in the market generally since National Savings and Investments last reviewed its rates in November 2002.
Rates on Premium Bonds, Income Bonds, Ordinary Account and General Extension Rate (all Variable Rate offers) remain unchanged. Rates on Capital Bonds and Children's Bonus Bonds (Fixed Rate offers) remain unchanged.
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 | sam.bennett@nsandi.com |
| Wendy Franklin | 020 7348 9449 | wendy.franklin@nsandi.com |
| Fax | 020 7348 9755 | |
| Out of hours | 07778 966387 | |
Annex A
New Issues of Fixed Rate Products
Available from 5 February 2003
Gross Rates*
| | Rate pa (change in brackets) | AER** |
1-year Pensioners Guaranteed Income Bonds
Series 15 | 3.30% (-0.15%) | 3.35% |
2-year Pensioners Guaranteed Income Bonds
Series 21 | 3.45% (-0.20%) | 3.51% |
5-year Pensioners Guaranteed Income Bonds
Series 30 | 3.75% (-0.30%) | 3.82% |
1-year Fixed Rate Savings Bond
Issue 18 |
£50,000+
£20,000+
£500+ |
| |
monthly interest option | £50,000+
£20,000+
£500+ |
|
3.40% (-0.15%)
3.20% (-0.15%)
3.05% (-0.15%)
3.35% (-0.10%)
3.15% (-0.15%)
3.00% (-0.15%) |
3.40%
3.20%
3.05%
3.40%
3.20%
3.04% |
3-year Fixed Rate Savings Bond
Issue 11 | £50,000+
£20,000+
£500+ |
| |
monthly interest option |
£50,000+
£20,000+
£500+ |
|
3.70% (-0.25%)
3.50% (-0.25%)
3.30% (-0.25%)
3.60% (-0.25%)
3.40% (-0.25%)
3.25% (-0.20%) |
3.70%
3.50%
3.30%
3.66%
3.45%
3.30% |
5-year Fixed Rate Savings Bond
Issue 9 | £50,000+
£20,000+
£500+ |
| |
monthly interest option |
£50,000+
£20,000+
£500+ |
|
3.85% (-0.30%)
3.65% (-0.30%)
3.50% (-0.30%)
3.75% (-0.30%)
3.55% (-0.30%)
3.40% (-0.30%) |
3.85%
3.65%
3.50%
3.82%
3.61%
3.45% |
Tax-free Rates
| | 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
17th Issue
Guaranteed compound rate over 2 years | 2.60% (-0.15%) | 3.25% | 4.33% |
5-year Fixed Interest Savings Certificates
67th Issue
Guaranteed compound rate over 5 years | 2.85% (-0.20%) | 3.56% | 4.75% |
2-year Index-linked Savings Certificates
15th Issue
Guaranteed compound rate over 2 years | Index-linking + 0.50% (-0.50%) | Index-linking + 0.63% | Index-linking+ 0.83% |
5-year Index-linked Savings Certificates
26th Issue
Guaranteed compound rate over 5 years | Index-linking + 1.00% (-0.45%) | Index-linking + 1.25% | Index-linking + 1.67% |
Annex B
New Variable Rates
Available from 19 February 2003
| Gross rates* | Rate pa (change in brackets) | AER** |
| ISA (Cash mini and TESSA accounts) | 4.05% (-0.10%) | 4.05% |
| Investment Account | | |
Under £500
£500+
£5,000+
£10,000+
£25,000+
£50,000+ |
2.45% (-0.15%)
2.55% (-0.15%)
2.65% (-0.15%)
2.85% (-0.15%)
3.05% (-0.15%)
3.45% (-0.15%) |
2.45%
2.55%
2.65%
2.85%
3.05%
3.45% |
| Treasurer's Account | | |
£10,000+
£25,000+
£100,000+ |
2.85% (-0.15%)
3.05% (-0.15%)
3.45% (-0.15%) |
2.85%
3.05%
3.45% |
* 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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