National Savings and Investments

INTEREST RATES

Fixed gross rates*

New issues from 2 April 2008	Rate pa	AER**
1-Year Guaranteed Growth Bond – Issue 42 Taxable, paid net	3.50%	3.50%
3-Year Guaranteed Growth Bond – Issue 36 Taxable, paid net	3.55%	3.55%
5-Year Guaranteed Growth Bond – Issue 33 Taxable, paid net	3.65%	3.65%
1-Year Guaranteed Income Bond – Issue 42 Taxable, paid net	3.40%	3.45%
3-Year Guaranteed Income Bond – Issue 36 Taxable, paid net	3.45%	3.51%
5-Year Guaranteed Income Bond – Issue 33 Taxable, paid net	3.55%	3.61%

Fixed tax-free rates***

New issues from 2 April 2008	Rate pa	AER**
Children’s Bonus Bonds – Issue 28 Guaranteed compound rate over 5 years (including 5th anniversary bonus)	3.40%	3.40%
Rate pa/ AER**	Equivalent grossed up rate for basic rate taxpayers†	Equivalent grossed up rate for higher rate taxpayers†
2-Year Fixed Interest Savings Certificates 41st Issue Guaranteed compound rate over 2 years	2.60%	3.25%	4.33%
5-Year Fixed Interest Savings Certificates 90th Issue Guaranteed compound rate over 5 years	2.70%	3.38%	4.50%
3-Year Index-linked Savings Certificates 16th Issue Guaranteed compound rate over 3 years	Index-linking plus 0.25%	Index-linking plus 0.31%	Index-linking plus 0.42%
5-Year Index-linked Savings Certificates 43rd Issue Guaranteed compound rate over 5 years	Index-linking plus 0.35%	Index-linking plus 0.44%	Index-linking plus 0.58%

Variable tax-free rates***

Current Rate pa	Current AER**	New Rate pa	New AER**
Direct ISA New rate from 6 April 2008 Guaranteed to be 0.30% above the base rate until 5 April 2009	5.80%	5.80%	5.55%	5.55%
General Extension Rate†† New rate from 1 May 2008	2.67%	2.67%	2.43%	2.43%

* 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.

†† Paid on 7th to 43rd Issue Fixed Interest Savings Certificates that matured before 8 October 2001 and Yearly Plan.

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 7am 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