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Press release
NATIONAL SAVINGS AND INVESTMENTS INCREASES FIXED INTEREST RATES
25 September 2003
National Savings and Investments (NS&I) is increasing the interest rates it offers on its fixed rate products, following an increase in gilt yields. The new rates come into effect on 25 September and reflect NS&I's commitment to offering consistent and fair returns to savers and investors.
Among products with increased interest rates are Fixed Interest Savings Certificates and Index-linked Savings Certificates, the unique investment which provides tax-free returns that outstrip inflation.
Highlights
- Up to 0.30% increases on Pensioners Guaranteed Income Bonds
- Up to 0.25% increases on Index Linked Savings Certificates
- Up to 0.15% increases on Fixed Interest Savings Certificates
- Up to 0.25% increases on Fixed Rate Savings Bonds
- Children's Bonus Bond rate increases by 0.25%
See Notes to Editors for full details
These new rates reflect an increase in gilt yields since these rates were last increased in August 2003.
Gill Cattanach, Commercial Director at NS&I, said: "The increase in gilt yields means we can offer higher rates on our fixed rate products. We always aim to pass on to savers and investors the benefits resulting from changes in the market.
ENDS
NOTES TO EDITORS
| | Rate pa (change in brackets) | AER** |
1-year Pensioners Guaranteed Income Bonds
Series 19 | 3.40% (+0.30%) | 3.45% |
2-year Pensioners Guaranteed Income Bonds
Series 25 | 3.60% (+0.20%) | 3.66% |
5-year Pensioners Guaranteed Income Bonds
Series 34 | 4.00% (+0.20) | 4.07% |
1-year Fixed Rate Savings Bond
Issue 22 |
£50,000+
£20,000+
£500+ |
| |
monthly interest option | £50,000+
£20,000+
£500+ |
|
3.45% (+0.25%)
3.25% (+0.25%)
3.10% (+0.25%)
3.40% (+0.25%)
3.20% (+0.25%)
3.05% (+0.25%) |
3.45%
3.25%
3.10%
3.45%
3.25%
3.09% |
3-year Fixed Rate Savings Bond
Issue 15 | £50,000+
£20,000+
£500+ |
| |
monthly interest option |
£50,000+
£20,000+
£500+ |
|
3.95% (+0.25%)
3.75% (+0.25%)
3.55% (+0.25%)
3.85% (+0.25%)
3.65% (+0.25%)
3.45% (+0.20%) |
3.95%
3.75%
3.55%
3.92%
3.71%
3.51% |
5-year Fixed Rate Savings Bond
Issue 13 |
£50,000+
£20,000+
£500+ |
| |
monthly interest option
| £50,000+
£20,000+
£500+ |
|
4.15% (+0.25%)
3.95% (+0.25%)
3.80% (+0.25%)
4.05% (+0.25%)
3.85% (+0.25%)
3.70% (+0.25%) |
4.15%
3.95%
3.80%
4.13%
3.92%
3.76% |
Capital Bonds - Guaranteed compound rate over 5 years
Issue 13 |
4.05% (+0.20%) |
4.05% |
| 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
21st Issue
Guaranteed compound rate over 2 years |
2.70% (+0.15) |
3.38% |
4.50% |
5-year Fixed Interest Savings Certificates
71st Issue
Guaranteed compound rate over 5 years |
3.00% (+0.15%) |
3.75% |
5.00% |
3-year Index-linked Savings Certificates
3rd Issue
Guaranteed compound rate over 3 years |
Index-linking + 0.95% (+0.25%) |
Index-linking + 1.19% |
Index-linking + 1.58% |
5-year Index-linked Savings Certificates
30th Issue
Guaranteed compound rate over 5 years |
Index-linking + 1.05% (0.15%) |
Index-linking + 0.31% |
Index-linking + 1.75% |
Children's Bonus Bonds
9th issue |
3.80% (0.25%) |
|
* 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 enquiries
| 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 | |
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