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Press release

CASH VALUES FOR NS&I’S INFLATION-BEATING SAVINGS IN JUNE 2007

15 May 2007

Retail Price Index decreases- now at 4.5% 
NS&I’s range of Inflation-beating Savings currently offer equivalent returns of up to 9.75%* per year (see table)

The link below provides the June 2007 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.jsp

Retail Prices Index

For working out these values in June, the Retail Price Index figure is 205.4. The increase in the Index over the year is 4.5%.

Inflation-beating savings rates of return

Because Index-linked Savings 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 gross1 rate for basic rate taxpayers	Equivalent gross rate1 for higher rate taxpayers
5-year (Issue 42) 1.35% + index-linking (RPI currently 4.5%)	7.31%*	9.75%*
3-year (Issue 15) 1.35% + index-linking (RPI currently 4.5%)	7.31%*	9.75%*

*These figures assume the RPI rises by 4.5% each year for the next five years and current rates of tax

ENDS

Notes to Editors

1. Gross means the taxable rate of interest without the deduction of UK Income Tax

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

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 complied and published monthly by the Office of National Statistics.  NS&I continues to use the RPI as the measure of inflation, and not the Consumer Prices Index (CPI), which the Government now uses for its inflation target.  Both the RPI and CPI can go up or down, and the differences between them can change.

4. Valuations for the 2-year, 3-year and 5-year Certificates are shown in separate tabs. They are for indicative purposes only.

5. 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.

6. National Savings and Investments is one of the largest savings organisations in the UK, offering a range of savings and investments products to 27 million customers.  All products offer 100% capital security, because they are backed by HM Treasury.

7. 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.

Gill Stephens		020 7348 9449
		gill.stephens@nsandi.com
Iman Asante		020 7348 9301
		iman.asante@nsandi.com
Angela Mason		020 7348 9433
		angela.mason@nsandi.com
ISDN for interviews		020 7602 4522
Out of hours		All numbers above diverted to staffed mobile phones

 

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