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Press release
NATIONAL SAVINGS AND INVESTMENTS RATE CHANGES
21 April 2005
National Savings and Investments (NS&I) is changing interest rates on most of its fixed rate products following an upward movement in market rates for Government Bonds (gilts).
The last interest rate changes to NS&I fixed-rate products were announced in November 2004 with the exception of Children’s Bonus Bonds which saw a change in February 2005.
Fixed Rate Products
New issues of Fixed Rate Savings Bonds, Children’s Bonus Bonds, Pensioners Guaranteed Income Bonds and Capital Bonds will offer interest rates up to 0.20% higher and will be available from 21 April 2005.
NS&I’s interest rates: key facts
- NS&I does not price discriminate between different channels – the return on products is the same no matter where, when or how they were bought. NS&I’s sales channels include telephone, online, by post or at any of the UK’s 15,000 Post Office™ branches
- NS&I’s accessibility is not limited by geography or location, as the same rates are available throughout the UK
- NS&I’s fixed rate products are on sale everyday throughout the year – many providers offer fixed rate products for limited periods during the year
- NS&I prices its products to give fair, consistent and value for money returns. NS&I does not try to buy market share, saving the need for customers to spend time shopping around for short-term headline rates
John Prout, NS&I’s sales director, said, “We always aim to provide consistent and fair rates and, as gilt yields have increased recently, we are now in a position to increase the interest rates offered on most of our fixed rate products. Whenever there are improvements in the market, we always aim to pass these benefits onto our customers”.
ENDS
Notes to Editors
|
New Tax-free Rates*
(Fixed Products) |
|
New rate p.a./ AER****
(change in brackets) |
Equivalent grossed up rate for basic rate taxpayers** |
Equivalent grossed up rate for higher rate taxpayers** |
|
Children’s Bonus Bonds
18th issue
Guaranteed compound rate over 5 years, including fifth anniversary bonus |
4.10% (+0.10%) |
n/a |
n/a |
Fixed Rates
| Gross Rates*** |
New rate p.a.
(change in brackets) |
AER**** |
|
1-year Pensioners Guaranteed Income Bonds
Series 28 |
4.20% (+0.20%) |
4.28% |
|
2-year Pensioners Guaranteed Income Bonds
Series 34 |
4.25% (+0.20%) |
4.33% |
|
5-year Pensioners Guaranteed Income Bonds
Series 43 |
4.25% (+0.10%) |
4.33% |
|
1-year Fixed Rate Savings Bonds
Issue |
|
£50,000+ |
4.30% (+0.15%) |
|
|
£20,000+ |
4.10% (+0.15%) |
|
|
£500+ |
3.95 % (+0.15%) |
|
|
monthly interest option |
|
£50,000+ |
4.20% (+0.15%) |
4.28% |
|
£20,000+ |
4.00% (+0.15%) |
4.07% |
|
£500+ |
3.85% (+0.15%) |
3.92% |
|
3-year Fixed Rate Savings Bonds
Issue 24 |
|
£50,000+ |
4.40% (+0.10% |
|
|
£20,000+ |
4.20% (+0.10%) |
|
|
£500+ |
4.05 (+0.10%) |
|
|
monthly interest option |
|
£50,000+ |
4.30% (+0.10%) |
4.39% |
|
£20,000+ |
4.10% (+0.10%) |
4.18% |
|
£500+ |
3.95% (+0.10%) |
4.02% |
|
Fixed Rates continued
|
5-year Fixed Rate Savings Bonds
Issue 22 |
|
£50,000+ |
4.45% (+0.10%) |
|
|
£20,000+ |
4.25% (+0.10%) |
|
|
£500+ |
4.10% (+0.10%) |
|
|
monthly interest option |
|
£50,000+ |
4.35% (+0.10%) |
4.44% |
|
£20,000+ |
4.15% (+0.10%) |
4.23% |
|
£500+ |
4.00% (+0.10%) |
4.07% |
|
Capital Bonds
Series 22 |
4.35% (+0.10%) |
|
|
|
|
|
|
|
* Tax-free means the return is exempt from UK Income Tax at all rates of taxation.
** At current tax rates.
*** 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.
2. NS&I is the exclusive sponsor of The Classical BRIT Awards, the UK’s premier classical music awards show, at the Royal Albert Hall on 25 May 2005.
3. For further information, or to arrange an interview, contact the media relations team.
Jonathan Akerman 020 7348 9433
jonathan.akerman@nsandi.com
Rabia Bapu-Jones 020 7348 9449
rabia.bapu-jones@nsandi.com
Elen Thomas 020 7348 9654
elen.thomas@nsandi.com
Fax 020 7348 9755
Out of hours All above numbers go to mobile phones staffed 24 hours
Web www.nsandi.com
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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