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Press release

NS&I GUARANTEED EQUITY BOND IS A BESTSELLER

04 December 2003

Latest issue outsells all others

High customer demand and escalating sales have made the latest issue of the National Savings and Investments Guaranteed Equity Bond (GEB) its best-selling issue yet.

Over £100 million was invested in the GEB during the six week offer period, which closed on 24 November, making it around 10 times larger than the average tranche size for similar structured products offered by all of the providers in this market in 2003.

In the past 18 months, National Savings and Investments has issued six GEBs, in which customers have invested around £500 million. The most recent - which had a minimum investment level of £2,000 - offered a gross return equivalent to 95% of any growth in the FTSE 100 index over a five-year term, with no upper limit or cap on the return. The first five Bonds offered a capped return of between 60% and 70%.

The Bond was to have been withdrawn from sale early following exceptional customer demand, but on this occasion NS&I was able to increase the tranche size - the total amount that could be invested in one of these limited issues - enabling customers to continue investing to the end of the offer period.

Gill Cattanach, National Savings and Investments commercial director, said: "Stock market recovery has been attracting investors back into the market, but there are many who still want the guarantee that their capital will be safe at the end of the investment term.

"Because our Guaranteed Equity Bond can offer that guarantee, increasingly it is becoming an popular investment for people who want to see the return on their money linked to potential growth in the FTSE 100."

Further issues of the GEB will become available in 2004. Investors who wish to receive advance notice before the next one goes on sale can contact NS&I on 0845 964 5000 or e-mail customerenquiries@nsandi.com to be added to a mailing list, which currently comprises over 20,000 names.

ENDS

Notes to Editors

1. NS&I's first five GEBs offered the following capped rates of return: GEB 1: 65%, GEB 2: 70%, GEB 3: 65%, GEB 4: 60%, GEB 5: 65%. Issue 6 offered unlimited potential return with a participation rate of 95% so investors will receive 95% of any of the growth in the FTSE 100 index over the five-year term however high it goes
2. NS&I has GEB case studies available on request
3. National Savings and Investments is one of the largest savings organisations in the UK which offers a range of savings and investments products. It has 30 million customers and £63 billion invested. All products offer 100% security, because they are backed by HM Treasury
4. Further information and digital images are available from the NS&I Media Team
5. 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.

	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
	ISDN for interviews	020 7602 4522
	Fax	020 7348 9755
	Out of hours	All telephone numbers diverted to staffed mobile phones

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.

Gareth Headon		020 7348 9494
		gareth.headon@nsandi.com
Gill Stephens		020 7348 9449
		gill.stephens@nsandi.com
Iman Asante		020 7348 9301
		iman.asante@nsandi.com
Monica Del-Villar		020 7348 9654
		monica.del-villar@nsandi.com
ISDN for interviews		020 7602 4522
Out of hours		All numbers above diverted to staffed mobile phones

 

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