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Press release
NATIONAL SAVINGS AND INVESTMENTS INCREASES FIXED INTEREST RATES
22 October 2003
National Savings and Investments (NS&I) is increasing the interest rates it offers on most of its fixed rate products - for the third time in two months - following further increases in gilt yields. The increases, of between 0.15% and 0.25%, come into effect on 22 October and reflect NS&I's commitment to offering consistent and fair returns to savers and investors.
Among products with increased interest rates are new issues of tax-free Fixed Interest Savings Certificates, Fixed Rate Savings Bonds and Pensioners Guaranteed Income Bonds.
NS&I's interest rates: key facts
- NS&I does not price discriminate between different channels - the return on products is the same no matter where, when or how they were bought. NS&I's sales channels include telephone, online, by post or at any of the UK's 17,000 Post Office branches
- NS&I's accessibility is not limited by geography or location
- NS&I's fixed rate products are on sale 365 days a year - many providers offer fixed rate products for limited periods during the year
- NS&I prices its products to give fair, consistent and value for money returns. NS&I does not try to buy market share, saving the need for customers to spend time shopping around for short-term headline rates
Peter Cornish, head of customer offer at NS&I, said: "Increases in market rates mean we can now make further increases in the rates on our fixed products. Whenever conditions allow, we always aim to pass these benefits onto our customers."
ENDS
NOTES TO EDITORS
| | Rate pa (change in brackets) | AER** |
1-year Pensioners Guaranteed Income Bonds
Series 20 | 3.60% (+0.20%) | 3.66% |
2-year Pensioners Guaranteed Income Bonds
Series 26 | 3.80% (+0.20%) | 3.87% |
5-year Pensioners Guaranteed Income Bonds
Series 35 | 4.20% (+0.20%) | 4.28% |
1-year Fixed Rate Savings Bond
Issue 23 |
£50,000+
£20,000+
£500+ |
| |
monthly interest option | £50,000+
£20,000+
£500+ |
|
3.70% (+0.25%)
3.50% (+0.25%)
3.35% (+0.25%)
3.60% (+0.20%)
3.40% (+0.20%)
3.30% (+0.25%) |
3.70%
3.50%
3.35%
3.66%
3.45%
3.35% |
3-year Fixed Rate Savings Bond
Issue 16 | £50,000+
£20,000+
£500+ |
| |
monthly interest option |
£50,000+
£20,000+
£500+ |
|
4.10% (+0.15%)
3.90% (+0.15%)
3.75% (+0.20%)
4.00% (+0.15%)
3.80% (+0.15%)
3.65% (+0.20%) |
4.10%
3.90%
3.75%
4.07%
3.87%
3.71% |
5-year Fixed Rate Savings Bond
Issue 14 |
£50,000+
£20,000+
£500+ |
| |
monthly interest option
| £50,000+
£20,000+
£500+ |
|
4.35% (+0.20%)
4.15% (+0.20%)
4.00% (+0.20%)
4.25% (+0.20%)
4.05% (+0.20%)
3.90% (+0.20%) |
4.35%
4.15%
4.00%
4.33%
4.13%
3.97% |
Capital Bonds - Guaranteed compound rate over 5 years
Issue 14 |
4.30% (+0.25%) |
4.30% |
| 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
22nd Issue
Guaranteed compound rate over 2 years |
2.85% (+0.15) |
3.56% |
4.75% |
5-year Fixed Interest Savings Certificates
72nd Issue
Guaranteed compound rate over 5 years |
3.15% (+0.15%) |
3.94% |
5.25% |
Children's Bonus Bonds
10th issue |
4.00% (+0.20%) |
|
* 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
2. NS&I is the exclusive sponsor of The Classical BRIT Awards, the UK's premier classical awards show, at the Royal Albert Hall on 26 May 2004.
3. For further information, or to arrange an interview, contact the media relations team.
| 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 | |
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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