National Savings and Investments

Interest Rates

Fixed gross rates*

New Issues from 18 June 2008

Rate pa	AER**
1-Year Guaranteed Growth Bond – Issue 44	4.75%	4.75%
Taxable, paid net
3-Year Guaranteed Growth Bond – Issue 38	4.75%	4.75%
Taxable, paid net
5-Year Guaranteed Growth Bond – Issue 35	4.75%	4.75%
Taxable, paid net
1-Year Guaranteed Income Bond – Issue 44	4.65%	4.75%
Taxable, paid net
3-Year Guaranteed Income Bond – Issue 38	4.65%	4.75%
Taxable, paid net
5-Year Guaranteed Income Bond – Issue 35	4.65%	4.75%
Taxable, paid net

Fixed tax-free rates***

New Issues from 18 June 2008

Rate pa	AER
Children's Bonus Bonds – Issue 30	4.45%	4.45%

Guaranteed compound rate over 5 years

(including 5th anniversary bonus)

Equivalent	Equivalent
grossed up	grossed up
rate for	rate for
basic rate	higher rate
Rate pa/AER	taxpayers†	taxpayers
2-Year Fixed Interest
Savings Certificates	3.50%	4.38%	5.83%
43rd Issue Guaranteed
compound rate over 2 years
5-Year Fixed Interest
Savings Certificates	3.50%	4.38%	5.83%
92nd Issue Guaranteed
compound rate over 5 years
3-Year Index-linked	Index-	Index-	Index-
Savings Certificates	linking plus††	linking plus	linking plus	18th Issue Guaranteed	1.00%	1.25%	1.67%
compound rate over 3 years
5-Year Index-linked	Index-	Index-	Index-
Savings Certificates	Linking plus	linking plus	linking plus	45th Issue Guaranteed	1.00%	1.25%	1.67%
compound rate over 5 years
*	Gross is the taxable rate of interest payable without the deduction of UK Income Tax.
**	AER (Annual Equivalent Rate) enables you to compare interest rates from different financial institutions 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 that the return is exempt from UK Income Tax and Capital Gains Tax at all rates of taxation.
†	At current rates of tax.
††	As measured by the Retail Prices Index published by the Office for National Statistics.

National Savings and Investments is a Trade Mark of the Director of Savings.

If you would like further information on our savings and investments please call 0845 964 5000 (maximum call charges from a BT landline are 4p per minute. Charges from other service providers may vary. Lines open 7 a.m. to midnight. For your security and to maintain the highest levels of service, calls may be recorded). Or visit our website at nsandi.com

National Savings and Investments is backed by HM Treasury