National Savings

NS&I

INTEREST RATES

Fixed gross rates * New Issues from 21 May 2008	Rate pa	AER **
1-Year Guaranteed Growth Bond – Issue 43 Taxable, paid net	4.00%	4.00%
3-Year Guaranteed Growth Bond – Issue 37 Taxable, paid net	4.00%	4.00%
5-Year Guaranteed Growth Bond – Issue 34 Taxable, paid net	4.05%	4.05%
1-Year Guaranteed Income Bond – Issue 43 Taxable, paid net	3.90%	3.97%
3-Year Guaranteed Income Bond – Issue 37 Taxable, paid net	3.90%	3.97%
5-Year Guaranteed Income Bond – Issue 34 Taxable, paid net	3.95%	4.02%
Fixed tax-free rates *** New Issues from 21 May 2008	Rate pa	AER
Children’s Bonus Bonds – Issue 29 Guaranteed compound rate over 5 years (including 5th anniversary bonus)	3.75%	3.75%
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 42nd Issue Guaranteed compound rate over 2 years	2.90%	3.63%	4.83%
5-Year Fixed Interest Savings Certificates 91st Issue Guaranteed compound rate over 5 years	2.95%	3.69%	4.92%
3-Year Index-linked Savings Certificates 17th Issue Guaranteed compound rate over 3 years	Index- linking plus†† 0.70%	Index- linking plus 0.88%	Index- linking plus 1.17%
5-Year Index-linked Savings Certificates 44th Issue Guaranteed compound rate over 5 years	Index- linking plus 0.70%	Index- linking plus 0.88%	Index- linking plus 1.17%

* 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 7.00 am 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