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Media centre /
Press releaseRATES ANNOUNCED FOR NS&I’S NEW BONDS11 February 2008As previously announced on 14 January 2008, NS&I is to launch two new fixed rate Bonds on 23 February 2008. The two new Bonds, Guaranteed Income Bonds and Guaranteed Growth Bonds, will replace NS&I’s Fixed Rate Savings Bond, providing a clearer, simpler choice for customers. Customers with savings invested in Pensioners Guaranteed Income Bonds and Capital Bonds, which will close to new sales on 23 February, will also be offered the option of transferring to the new Bonds when their current investments mature. The Guaranteed Income Bond offers customers the opportunity to receive their interest as a monthly income whilst with the Guaranteed Growth Bond customers will receive their interest at the end of their chosen investment term. Fixed Rate Savings Bonds will be withdrawn from sale to new customers from 23 February 2008. Both the new Bonds will offer customers the opportunity to invest between £500 and £1 million in a fixed rate bond with guaranteed rates of interest of between 3.85-4.05%, for either one, three or five year terms. NS&I prices its fixed rate products according to a number of factors, the principal factor being the return on gilts.
Ends Notes to Editors 1. The Guaranteed Income Bond and the Guaranteed Growth Bond can be bought online at www.nsandi.com, over the phone on 0500 500 000* at a Post Office branch or by post. They offer fixed investment terms of 1, 3 and 5 years. A 90 day interest penalty is applied to early withdrawals. Bonds can be opened with a minimum initial investment of £500 and allow a maximum investment of £1 million in total (including any amount held in previous issues of Fixed Rate Savings Bonds). Interest is paid net of UK income 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. Gross means the taxable rate of interest before the deduction of UK Income Tax. 4. NS&I is an Executive Agency of the Chancellor of the Exchequer. * Calls are free from landlines but may be chargeable from mobiles. Calls may be recorded.
Media team The numbers below are for media use only. Customers wishing to contact NS&I can find details here.
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