 |
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 |
Media centre /
Press releaseNS&I INCREASES OPPORTUNITY TO SAVE TAX-FREE AND BEAT INFLATION22 April 2004SAVINGS CERTIFICATES MAXIMUM INVESTMENT RAISED TO £15,000 BY NATIONAL SAVINGS AND INVESTMENTSFrom 29 April 2004 the amount customers can invest in National Savings and Investments Index-linked Savings Certificates - the unique investment that offers inflation-beating, tax-free returns - and Fixed Interest Savings Certificates, which provide tax-free returns, will increase to £15,000 per Issue, up from the current maximum of £10,000. Customer demand Part of the reason the threshold has been increased is in response to customer behaviour - whenever NS&I introduces a new Issue of Savings Certificates, considerable numbers of people invest, illustrating high demand for people seeking the opportunity to invest tax-free and, in the case of Index-linked Savings Certificates, beat inflation as well. The maximum on Index-linked Savings Certificates was last raised in March 1991 to £10,000, and the maximum on Fixed Interest Savings Certificates increased to £10,000 in November 1991. If £10,000 invested in March 1991 had risen in line with inflation, it would be worth £13,988 today, while £10,000 invested in November 1991 would be worth £13,555, showing that NS&I has increased the limit above the rate of inflation to £15,000. Investment details Index-linked Savings Certificates offer a tax-free return that moves in line with the rate of inflation (Retail Prices Index) together with a guaranteed rate of interest, provide tax-free and inflation-beating returns and are available in 3-year and 5-year terms. Fixed Interest Savings Certificates offer fixed rates of interest so customers know how much interest they will receive, provide tax-free returns and are available in 2-year and 5-year terms. Anyone aged seven or above can invest from £100 in each Issue of Savings Certificates, and a new Issue becomes available whenever National Savings and Investments changes the interest rates. Customers do not need to declare their investment in Savings Certificates to the Inland Revenue, nor do they have to declare the tax-free returns they receive. Savings Certificates are on sale all year round meaning that NS&I, unlike many other high street providers, always has fixed rate offers available to savers and investors. Interest rates and equivalent returns - effective from 22 April 2004 Index-linked Savings Certificates
Fixed Interest Savings Certificates
Effects of inflation and tax Currently, 2 million people hold Savings Certificates, worth a total of £17 billion, yet they remain one of Britain's financial secrets as British savers remain largely unaware of the effects of inflation and tax on their savings. Research from National Savings and Investments has found that, nationally, only one in four people (27%) take the rate of inflation into account when choosing a home for their money, and around one in three people (37%) take into account the amount of tax they will have to pay when looking to save (see Notes to Editors). Gill Cattanach, National Savings and Investments marketing director, said: 'Raising the maximum amount that can be invested is excellent news for Britain's savers and investors. It's a golden opportunity for people to protect their hard-earned savings against the effects of inflation and from tax. On top of that, all money invested with us is 100% secure because it is backed by HM Treasury. "Our decision to raise the limit was in response to comments from many of our 2 million Savings Certificates customers who said they would invest more if the maximum was raised." How to buy Savings Certificates
Other tax free savings National Savings and Investments offers a range of products which offer a tax-free return, including Premium Bonds where investors have a chance to win £1 million every month, Children's Bonus Bonds which provide tax-free savings and bonuses until a child's twenty-first birthday, and a cash-mini ISA allowing £3,000 to be sheltered every tax year. ENDS Notes to Editors1. Fixed Interest Savings Certificates were introduced in February 1916 as part of the government's appeal for ordinary people to help fund the war effort. Index-linked Savings Certificates were introduced in June 1975 as a way of protecting against high inflation at the time. 2. Customers can invest between £10,000 and £15,000 from 29 April 2004 and not before. 3. Research conducted among 1,011 adults by TNS via PhoneBus, 6-8 February 2004. 4. National Savings and Investments is one of the largest savings organisations in the UK, offering a range of savings and investments products (to 30 million customers). All products offer 100% security, because they are backed by HM Treasury. 5. For further information, interviews, case studies and digital images, contact the NS&I Media Team. An ISDN line is available for interviews: 020 7602 4522. 6. 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. NS&I Media Team
Media team The numbers below are for media use only. Customers wishing to contact NS&I can find details here.
|
|
Search |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
 |
|
|
||||||||||||||||||||||||||||||
