National Savings

1998-01-091998-01-16TSO (The Stationery Office), St Crispins, Duke Street, Norwich, NR3 1PD, 01603 622211, customer.services@tso.co.uk55017UN001UN001

The following notice is in substitution for that which appeared on page 255 of The London Gazette dated 9th January 1998

Fixed Interest National Savings Certificates—New Issue

45th Issue Savings Certificates will go on sale from 9th January 1998. They will grow in value at a guaranteed rate each year as follows:

Year 1 3.6%
Year 2 3.9%
Year 3 4.7%
Year 4 5.7%
Year 5 7.14%
   If a Certificate is held for five years, these rates will give a tax-free and guaranteed return equal to 5.0% per annum compound.

Index-linked National Savings Certificates—New Issue

  12th Index-linked Issue Savings Certificates will go on sale from 9th January 1998. The value of a Certificate will move in line with the rate of inflation as measured by the Retail Prices Index, plus Extra Interest as follows:

Purchase price + Index-linking for year 1 + 1% of Purchase price = 1st Anniversary Value
1st Anniversary Value + Index-linking for year 2 + 1.25% of 1st Anniversary Value = 2nd Anniversary Value
2nd Anniversary Value + Index-linking for year 3 + 2% of 2nd Anniversary Value = 3rd Anniversary Value
3rd Anniversary Value + Index-linking for year 4 + 3% of 3rd Anniversary Value = 4th Anniversary Value
4th Anniversary Value + Index-linking for year 5 + 5.31% of 4th Anniversary Value = 5th Anniversary Value
  If a Certificate is held for five years, these rates will give a tax-free and guaranteed return equal to 2.5% per annum compound in addition to index-linking.