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NATIONAL SAVINGS AND INVESTMENTS INFLATION-BEATING SAVINGS CASH VALUES IN AUGUST 2006

18 July 2006

RPI now at 3.3%

 

The range of Inflation-beating Savings currently offer equivalent returns of up to 7.33%

The link below provides the August 2006 cash values for Index-linked Savings Certificates held for one year or more. The charts refer to all certificates bought by investors since their first launch in 1975.

The charts show the exact value of a £100 Certificate including supplements, bonuses and extra interest.

The calculator and tables can be accessed at www.nsandi.com/products/ilsc/calculator.

Retail Prices Index

For working out these values in August, the Retail Price Index figure is 198.5. The increase in the Index over the year is 3.3%.

Inflation-beating savings rates of return

Because Index-linked Saving Certificates offer a tax-free2 return that beats inflation, it makes them particularly attractive for basic as well as higher rate taxpayers.

Investment terms and interest rate

Investment terms and interest rate	Equivalent gross rate for basic rate taxpayers	Equivalent gross rate for higher rate taxpayers
5-year (Issue 41) 1.10% + index-linking (RPI currently 3.3%)	5.50%	7.33%
3-year (Issue 13) 1.05% + index-linking (RPI currently 3.3%)	5.43%	7.25%

(These figures assume the RPI rises by 3.3% each year for the next five years and current rates of tax )

ENDS

Notes to Editors

1. Valuations for the 2-year, 3-year and 5-year Certificates are shown in separate tabs.

2. All returns are free of UK Income Tax and Capital Gains Tax.

3. Customers requiring more information or an exact valuation of a certificate can call National Savings and Investments on 0845 964 5000.  Standard call charges apply, please check with your service provider. For your security and to maintain the highest levels of service, calls may be recorded.

4. National Savings and Investments is one of the largest savings organisations in the UK, offering a range of savings and investments products to 26 million customers.  All products offer 100% capital security, because they are backed by HM Treasury.

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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