National Savings and Investments

2-year Fixed Interest National Savings Certificates – New Issue

28th Issue 2-year Fixed Interest Savings Certificates went on sale on 19th August 2004. A Certificate will grow in value at a guaranteed rate each year as follows:

Year 1	3.25%
Year 2	3.46%

If a Certificate is held for two years, these rates will give a tax-free and guaranteed return equal to 3.35% pa compound.

5-year Fixed Interest National Savings Certificates – New Issue

78th Issue 5-year Fixed Interest Savings Certificates went on sale on 19th August 2004. A Certificate will grow in value at a guaranteed rate each year as follows:

Year 1	3.05%
Year 2	3.15%
Year 3	3.35%
Year 4	3.65%
Year 5	4.06%

If a Certificate is held for five years, these rates will give a tax-free and guaranteed return equal to 3.45% pa compound.

3-year Index-linked National Savings Certificates – New Issue

9th Issue 3-year Index-linked Savings Certificates went on sale on 19th August 2004. The value of a Certificate will move in line with the rate of inflation as measured by the Retail Prices Index (subject to the detailed rules set out in the terms and conditions), plus extra interest as follows:

Purchase Price	+	Index-linking	+	0.85%	=	1st Anniver-
for year 1		Purchase Price		sary Value
1st Anniver-	+	Index-linking	+	1.05% of 1st	=	2nd Anniver-
sary Value		for year 2		Anniversary		sary Value
				Value
2nd Anniver-	+	Index-linking	+	1.41% of 2nd	=	Maturity
sary Value		for year 3		Anniversary		Value
				Value

If a Certificate is held for three years, these rates will give a tax-free and guaranteed return equal to 1.10% pa compound in addition to index-linking.

5-year Index-linked National Savings Certificates – New Issue

36th Issue 5-year Index-linked Savings Certificates went on sale on 19th August 2004.

The value of a Certificate will move in line with the rate of inflation as measured by the Retail Prices Index (subject to the detailed rules set out in the terms and conditions), plus extra interest as follows:

Purchase Price	+	Index-linking	+	0.85%	=	1st Anniver-
for year 1		Purchase Price		sary Value
1st Anniver-	+	Index-linking	+	1.05% of 1st	=	2nd Anniver-
sary Value		for year 2		Anniversary		sary Value
				Value
2nd Anniver-	+	Index-linking	+	1.25% of 2nd	=	3rd Anniver-
sary Value		for year 3		Anniversary		sary Value
				Value
3rd Anniver-	+	Index-linking	+	1.45% of 3rd	=	4th Anniver-
sary Value		for year 4		Anniversary		sary Value
				Value
4th Anniver-	+	Index-linking	+	1.66% of 4th	=	Maturity
sary Value		for year 5		Anniversary		Value
				Value

If a Certificate is held for five years, these rates will give a tax-free and guaranteed return equal to 1.25% pa compound in addition to index-linking.

National Savings and Investments

Capital Bonds – New Series

Series 20 Capital Bonds went on sale on 19th August 2004. A Bond will grow in value at a guaranteed gross rate each year as follows:

Year 1	4.10%
Year 2	4.40%
Year 3	4.70%
Year 4	5.00%
Year 5	5.31%

If a Bond is held for five years, these rates will give a guaranteed return equal to 4.70% pa compound. The interest is credited gross and is taxable.

National Savings and Investments

Children’s Bonus Bonds – New Issue

Issue 16 Children’s Bonus Bonds went on sale on 19th August 2004. For the first five years each £25 unit will earn interest at 3.00% pa compound. On the fifth anniversary of purchase it also earns a bonus of £2.11 (8.44% of purchase price). At these rates a Bond will earn a tax-free return equal to 4.45% pa compound over the first five years.

National Savings and Investments

Fixed Rate Savings Bonds – New Issues

New Issues of Fixed Rate Savings Bonds went on sale on 19th August 2004 as shown in the table below. The rate of interest earned by a Bond will be determined by its capital value at any time - the original investment plus any interest added to the Bond less any repayments. The rate is determined by whether the interest is paid monthly or at maturity. Interest is paid net of tax.

Term	Capital value		Gross Annual Rates
	of Bond	Monthly	Annual
		interest option	interest option
1-year	£500 to £19,999.99	4.05%	4.15%
Issue 28	£20,000 to £49,999.99	4.20%	4.30%
	£50,000 and above	4.40%	4.50%
3-year	£500 to £19,999.99	4.35%	4.45%
Issue 22	£20,000 to £49,999.99	4.50%	4.60%
	£50,000 and above	4.70%	4.80%
5-year	£500 to £19,999.99	4.35%	4.45%
Issue 20	£20,000 to £49,999.99	4.50%	4.60%
	£50,000 and above	4.70%	4.80%

National Savings and Investments

Pensioners Guaranteed Income Bonds

1-year Term – New Series

Series 26 1-year Pensioners Guaranteed Income Bonds went on sale on 19th August 2004. The interest rate, fixed and guaranteed for the first year a Bond is held, is 4.35% pa gross. The interest is paid gross and is taxable.

National Savings and Investments

Pensioners Guaranteed Income Bonds

2-year Term – New Series

Series 32 2-year Pensioners Guaranteed Income Bonds went on sale on 19th August 2004. The interest rate, fixed and guaranteed for the first two years a Bond is held, is 4.50% pa gross. The interest is paid gross and is taxable.

National Savings and Investments

Pensioners Guaranteed Income Bonds

5-year Term – New Series

Series 41 5-year Pensioners Guaranteed Income Bonds went on sale on 19th August 2004. The interest rate, fixed and guaranteed for the first five years a Bond is held, is 4.60% pa gross. The interest is paid gross and is taxable.

National Savings and Investments

Easy Access Savings Accounts –

Notice of New Interest Rates

On and from 1st September 2004 the variable gross rates of interest payable on Easy Access Savings Accounts will be as follows:

Balance in Account	Rate of interest
£100 - £999.99	2.00% pa
£1,000 - £4,999.99	3.50% pa
£5,000 - £9,999.99	3.80% pa
£10,000 - £24.999.99	4.05% pa
£25,000 - £49,999.99	4.30% pa
£50,000 and above	4.55% pa

The interest is credited gross and is taxable.

National Savings and Investments

Individual Savings Accounts –

Notice of New Interest Rates

On and from 1st September 2004 the variable tax-free rate of interest payable on Individual Savings Accounts (cash mini and TESSA-only accounts) will be 4.45% pa.

National Savings and Investments

Ordinary Accounts –

Notice of New Interest Rates

On and from 1st September 2004 the variable rates of interest payable on Ordinary Accounts will be as follows:

	Standard rate	1.10% pa
	Higher rate	1.20% pa

The Higher rate of interest is paid for each complete calendar month that £500 or more is in the account.

National Savings and Investments

Investment Accounts –

Notice of New Interest Rates

On and from 1st September 2004 the variable gross rates of interest payable on Investment Accounts will be as follows:

Balance in Account	Rate of interest
up to £499.99	3.25% pa
£500 to £4,999.99	3.30% pa
£5,000 to £9,999.99	3.40% pa
£10,000 to £24,999.99	3.60% pa
£25,000 to £49,999.99	3.80% pa
£50,000 and above	4.15% pa

The interest is credited gross and is taxable.

National Savings and Investments Treasurer’s Accounts – Notice of New Interest Rates

On and from 1st September 2004 the variable gross rates of interest payable on Treasurer’s Accounts will be as follows:

£10,000 to £24,999.99	3.60% pa
£25,000 to £99,999.99	3.80% pa
£100,000 and above	4.15% pa

National Savings and Investments –

New General Extension Rate

On and from 1st September 2004 the variable rate of interest for National Savings Certificates (including Yearly Plan Certificates) earning the General Extension Rate will be 2.28% pa tax-free.

National Savings and Investments

Income Bonds – Notice of New Interest Rate

On and from 30th September 2004 the variable “Treasury Rate” of interest payable on Income Bonds will be 4.20% pa gross. The bonus rate for bonds held under the same register number with a total capital value of at least £25,000 will be 0.25% pa gross. The interest is paid gross and is taxable.

Premium Savings Bonds –

Notice of New Interest Rate

On and from 1st December 2004 the rate of interest specified for determining the amount of the prize fund will be 3.20% pa. In respect of each prize draw there will be one prize for every 24,000 bond units eligible for inclusion in the draw.

Issued by National Savings and Investments

on behalf of the Treasury