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NATIONAL SAVINGS AND INVESTMENTS RATE CHANGES
19 February 2003
Annex A
New Issues of Fixed Rate Products
Available from 21 February 2003
Gross Rates*
| | Rate pa (change in brackets) | AER** |
1-year Pensioners Guaranteed Income Bonds
Series 16 | 3.00% (-0.30%) | 3.04% |
2-year Pensioners Guaranteed Income Bonds
Series 22 | 3.15% (-0.30%) | 3.20% |
5-year Pensioners Guaranteed Income Bonds
Series 31 | 3.60% (-0.15%) | 3.66% |
1-year Fixed Rate Savings Bond
Issue 19 |
£50,000+
£20,000+
£500+ |
| |
monthly interest option | £50,000+
£20,000+
£500+ |
|
3.05% (-0.35%)
2.85% (-0.35%)
2.70% (-0.35%)
3.00% (-0.35%)
2.80% (-0.35%)
2.65% (-0.35%) |
3.05%
2.85%
2.70%
3.04%
2.84%
2.68% |
3-year Fixed Rate Savings Bond
Issue 12 | £50,000+
£20,000+
£500+ |
| |
monthly interest option |
£50,000+
£20,000+
£500+ |
|
3.45% (-0.25%)
3.25% (-0.25%)
3.05% (-0.25%)
3.40% (-0.20%)
3.20% (-0.20%)
3.00% (-0.25%) |
3.45%
3.25%
3.05%
3.45%
3.25%
3.04% |
5-year Fixed Rate Savings Bond
Issue 10 | £50,000+
£20,000+
£500+ |
| |
monthly interest option |
£50,000+
£20,000+
£500+ |
|
3.70% (-0.15%)
3.50% (-0.15%)
3.35% (-0.15%)
3.60% (-0.15%)
3.40% (-0.15%)
3.30% (-0.10%) |
3.70%
3.50%
3.35%
3.66%
3.45%
3.35% |
| Tax free rates*** | Rate pa/ AER** (change in brackets) | AER** |
| Children's Bonus Bonds Issue 6 | 3.35% (-0.30%) | 3.35% |
| | 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
18th Issue
Guaranteed compound rate over 2 years | 2.40% (-0.20%) | 3.00% | 4.00% |
5-year Fixed Interest Savings Certificates
68th Issue
Guaranteed compound rate over 5 years | 2.70% (-0.15%) | 3.38% | 4.50% |
5-year Index-linked Savings Certificates
27th Issue
Guaranteed compound rate over 5 years | Index-linking + 0.80% (-0.20%) | Index-linking + 1.00% | Index-linking + 1.33% |
Annex B
New Variable Rates
Available from 1 March 2003
| Gross rates* | | Rate pa (change in brackets) | AER** |
| Ordinary Account | £500+ | 0.35% (-0.25%) | 0.35% |
| | Under £500 | 0.25% (-0.25%) | 0.25% |
Tax-free
| Gross rates* | Rate pa (change in brackets) | AER** |
| ISA (Cash mini and TESSA accounts) | 3.80% (-0.25%) | 3.80% |
| General Extension Rate | 1.29% (-0.21%) | 1.29% |
New Variable Rates
Available from 7 March 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+ |
3.20% (-0.25%)
2.80% (-0.25%)
2.60% (-0.25%)
2.40% (-0.25%)
2.30% (-0.25%)
2.20% (-0.25%) |
3.20%
2.80%
2.60%
2.40%
2.30%
2.20% |
| Treasurer's Account | | |
£10,000+
£25,000+
£100,000+ |
3.20% (-0.25%)
2.80% (-0.25%)
2.60% (-0.25%) |
3.20%
2.80%
2.60% |
New Variable Rates
Available from 4 April 2003
| Gross rates* | Rate pa (change in brackets) | AER** |
| Income Bonds | | |
£25,000+
Under £25,000 |
| 3.50% (-0.30%)
3.25% (-0.30%) |
| 3.56%
3.30%
|
New Premium Bond Rate and Prize Fund Structure
From 1 June 2003
| | Rate pa (change in brackets) |
| Premium Bonds (rate used to calculate prize fund)Odds per £1 Bond unit - 30,000 to1 (currently 28,500 to 1). Prize fund split between high, medium and low value prize bands as follows: 5%, 5% and 90% respectively (currently 5%, 7.5% and 87.5%). All prizes are tax-free. | 2.25% (-0.15%) |
* 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.
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