National Savings

1999-10-08TSO (The Stationery Office), St Crispins, Duke Street, Norwich, NR3 1PD, 01603 622211, customer.services@tso.co.uk55631950950

5-YEAR FIXED INTEREST SAVINGS CERTIFICATES—NEW ISSUE

53rd Issue 5-Year Savings Certificates, on sale from 8th October 1999, will grow in value at a guaranteed rate each year as follows: Year 1 3.9% Year 2 4.0% Year 3 4.2% Year 4 4.4% Year 5 5.01% If a Certificate is held for five years, these rates will give a tax-free and guaranteed return equal to 4.3% pa compound.

2-YEAR FIXED INTEREST SAVINGS CERTIFICATES—NEW ISSUE

1st Issue 2-Year Savings Certificates, on sale from 8th October 1999, will grow in value at a guaranteed rate each year as follows: Year 1 3.75% Year 2 4.66% If a Certificate is held for two years, these rates will give a tax-free and guaranteed return equal to 4.2% pa compound.

5-YEAR INDEX-LINKED SAVINGS CERTIFICATES—NEW ISSUE

16th Issue 5-year Index-linked Certificates will go on sale from 8th October 1999. 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 for year 1	+ 1.2% of Purchase price	= 1st Anniversary Value
1st Anniversary Value	+ Index-linking for year 2	+ 1.4% of 1st Anniversary Value	= 2nd Anniversary Value
2nd Anniversary Value	+ Index-linking for year 3	+ 1.6% of 2nd Anniversary Value	= 3rd Anniversary Value
3rd Anniversary Value	+ Index-linking for year 4	+ 2.0% of 3rd Anniversary Value	= 4th Anniversary Value
4th Anniversary Value	+ Index-linking for year 5	+ 2.81% 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 1.8% pa compound in addition to index-linking.

2-YEAR INDEX-LINKED SAVINGS CERTIFICATES—NEW ISSUE

1st Issue 2-Year Index-linked Certificates will go on sale from 8th October 1999. 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 the terms and conditions), plus extra interest as follows:

Purchase price	+ Index-linking for year 1	+ 1.75% of Purchase price	= 1st Anniversary Value
1st Anniversary Value	+ Index-linking for year 2	+ 3.26% of 1st Anniversary Value	= 2nd Anniversary Value

If a Certificate is held for two years, these rates will give a tax-free and guaranteed return equal to 2.5% pa compound in addition to index-linking. Issued by National Savings on behalf of the Treasury.