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Press release
NATIONAL SAVINGS AND INVESTMENTS RATE CHANGES
27 November 2002
National Savings and Investments is increasing its rates on a number of its fixed rate products (see Annex A for details) following rises in returns (yield) in the short to medium term money markets. Increases range from 0.10% to 0.20%.
It is also decreasing the rate on its 2-year Index-linked Savings Certificates by 0.15%.
Gill Cattanach, Commercial Director said,
"We have a fair and consistent approach towards interest rates. We have always said that we will increase our rates when market conditions allow us to do so and these increases reflect that position."
ENDS
Notes to Editors
Media Information
| Mark Brooks | 020 7348 9301 mark.brooks@nsandi.com |
| Jonathan Akerman | 020 7348 9433 jonathan.akerman@nsandi.com |
| Sam 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 |
Annex A - New Issues of Fixed Rate Products : Available from 28 November 2002
Gross Rates*
| | Rate pa (change in brackets) | AER** |
1-year Pensioners Guaranteed Income Bonds
Series 14 | 3.45% (+0.20%) | 3.51% |
2-year Pensioners Guaranteed Income Bonds
Series 20 | 3.65% (+0.20%) | 3.71% |
5-year Pensioners Guaranteed Income Bonds
Series 29 | 4.05% (+0.15%) | 4.13% |
1-year Fixed Rate Savings Bond
Issue 17 |
£50,000+
£20,000+
£500+ |
| |
monthly interest option | 50,000+
£20,000+
£500+ |
|
3.55% (+0.20%)
3.35% (+0.20%)
3.20% (+0.20%)
3.45% (+0.15%)
3.30% (+0.20%)
3.15% (+0.20%) |
3.55%
3.35%
3.20%
3.51%
3.35%
3.20% |
3-year Fixed Rate Savings Bond
Issue 10 | £50,000+
£20,000+
£500+ |
| |
monthly interest option |
£50,000+
£20,000+
£500+ |
|
3.95% (+0.15%)
3.75% (+0.15%)
3.55% (+0.15%)
3.85% (+0.15%)
3.65% (+0.15%)
3.45% (+0.10%) |
3.95%
3.75%
3.55%
3.92%
3.71%
3.51% |
5-year Fixed Rate Savings Bond
Issue 8 | £50,000+
£20,000+
£500+ |
| |
monthly interest option |
£50,000+
£20,000+
£500+ |
|
4.15% (+0.10%)
3.95% (+0.10%)
3.80% (+0.10%)
4.05% (+0.10%)
3.85% (+0.10%)
3.70% (+0.10%) |
4.15%
3.95%
3.80%
4.13%
3.92%
3.76% |
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
16th Issue
Guaranteed compound rate over 2 years | 2.75% (+0.20%) | 3.44% | 4.58% |
5-year Fixed Interest Savings Certificates
66th Issue
Guaranteed compound rate over 5 years | 3.05% (+0.15% | 3.81% | 5.08% |
2-year Index-linked Savings Certificates
14th Issue
Guaranteed compound rate over 2 years | Index-linking + 1.00% (-0.15%) | Index-linking + 1.25% | Index-linking+ 1.67% |
5-year Index-linked Savings Certificates
25th Issue
Guaranteed compound rate over 5 years | Index-linking + 1.45% (+0.15%) | Index-linking + 1.81% | Index-linking + 2.42% |
1. Last rate change on other fixed rate products: 4 October 2002.
* 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
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