National Savings and Investments

NATIONAL SAVINGS AND INVESTMENTS—NEW GENERAL EXTENSION RATE

Effective 1 January 2008, the variable rate of interest for National Savings Certificates (including Yearly Plan Certificates) earning the General Extension Rate will be 2.91% pa tax-free.

NATIONAL SAVINGS ORDINARY ACCOUNTS—NOTICE OF NEW INTEREST RATES

On and from 1 January 2008 the variable rates of interest payable on Ordinary Accounts will be as follows:

up to £499.99	1.85% pa
£500 and above	1.95% pa

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

NATIONAL SAVINGS INCOME BONDS—NOTICE OF NEW INTEREST RATE

On and from 7 January 2008 the variable “Treasury Rate” of interest payable on Income Bonds will be 4.95% 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.

PREMIUM SAVINGS BONDS—NOTICE OF NEW INTEREST RATE AND CHANGE TO SCALE OF PRIZES

On and from 1 January 2008 the rate of interest specified for determining the amount of the prize fund will be 3.80% pa. In respect of each prize draw there will be one prize for every 21,000 bond units eligible for inclusion in the draw. The monthly prize fund will be shared between the higher, medium and lower value bands as follows:

8%, 6% and 86% respectively (subject to any adjustments required by the terms and conditions).

Issued by National Savings and Investments on behalf of the Treasury.