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Interest rates

Tax-free / inflation-beating

Minimum investment £100

		Term	Tax-free rate pa/AER	Equivalent gross rates*
		3-year 16th Issue Guaranteed compound rate over 3 years	Index-linking + 0.25%	Index-linking + 0.31% basic rate, 0.42% higher rate
		5-year 43rd Issue Guaranteed compound rate over 5 years	Index-linking + 0.35%	Index-linking + 0.44% basic rate, 0.58% higher rate

* Equivalent gross rates for basic and higher rate taxpayers at current rates of tax.

To find out the current value of your Index-linked Savings Certificate, see our Index-linked valuations calculator.

For a summary of the rates for all our products, see interest rates.

Year by year rates

		3-year 16th Issue
		purchase price		+ Index-linking for year 1		+ 0.1% of purchase price		= 1st anniversary value
		1st anniversary value		+ Index-linking for year 2		+ 0.2% of 1st anniversary value		= 2nd anniversary value
		2nd anniversary value		+ Index-linking for year 3		+ 0.46% of 2nd anniversary value		= maturity value
		5-year 43rd Issue
		purchase price		+ Index-linking for year 1		+ 0.1% of purchase price		= 1st anniversary value
		1st anniversary value		+ Index-linking for year 2		+ 0.2% of 1st anniversary value		= 2nd anniversary value
		2nd anniversary value		+ Index-linking for year 3		+ 0.25% of 2nd anniversary value		= 3rd anniversary value
		3rd anniversary value		+ Index-linking for year 4		+ 0.5% of 3rd anniversary value		= 4th anniversary value
		4th anniversary value		+ Index-linking for year 5		+ 0.71% of 4th anniversary value		= maturity value

 

No interest is earned on Certificates (except Reinvestments) repaid in the first year, see terms and conditions.

Definitions

Tax-free means the interest and prizes are exempt from UK Income Tax and Capital Gains Tax.

AER (Annual Equivalent Rate) is a notional rate that illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and the AER are the same.