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CASH VALUES FOR NS&I’s INFLATION-BEATING SAVINGS IN OCTOBER 2008
16 September 2008
Retail Prices Index reduces to 4.8%
The tables attached provide the September 2008 cash values for Index-linked Savings Certificates held for one year or more.
The calculator is a quick and easy way to check approximately how much Index-linked Savings Certificates are worth and includes supplements, bonuses and extra interest earned at the relevant rates for each issue.
The calculator can also be accessed at www.nsandi.com/products/ilsc/calculator.jsp.
Retail Prices Index
For working out these values in October the Retail Prices Index figure is 217.2. The increase in the Index over the year is 4.8%.
Inflation-Beating savings rates of return
Because Index-linked Savings Certificates offer a tax-free1 return that beats inflation when held for at least a year, it makes them particularly attractive for basic as well as higher rate taxpayers.
|
Issues available |
Rate p.a./ AER2
|
|
5-year (Issue 45)
Guaranteed compound rate over 5 years |
RPI3 + 1%
|
| |
|
|
3-year (Issue 18)
Guaranteed compound rate over 3 years |
RPI + 1% |
ENDS
Notes to Editors
1. All returns are free of UK Income Tax and Capital Gains Tax.
2. 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.
3. RPI (Retail Prices Index) is the measure of inflation NS&I uses to calculate measures in the value of its Index-linked Savings Certificates. The RPI is compiled and published monthly by the Office of National Statistics. The RPI can go up or down.
4. The rate of RPI in August 2008 (announced 16 September 2008) will apply to investments in Inflation-Beating Savings from 1 October 2008.
5. Valuations for the 2-year, 3-year and 5-year Certificates are shown in separate tabs of the attached document. They are for indicative purposes only.
6. Customers requiring more information or an exact valuation of a certificate can call National Savings and Investments on 0845 964 5000. Maximum call charges from a BT landline are 4p per minute. Charges from other service providers will vary. For your security and to maintain the highest levels of service, calls may be recorded.
7. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments products to 28 million customers. All products offer 100% capital security, because we are backed by HM Treasury.
8. Subscribe to the NS&I RSS newsfeed. Simply copy and paste this link www.nsandi.com/mediacentre.xml into your RSS reader to receive regular news alerts from NS&I .
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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