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	3.50%	3.50%
Taxable, paid net
3-Year Guaranteed Growth Bond – Issue 36	3.55%	3.55%
Taxable, paid net
5-Year Guaranteed Growth Bond – Issue 33	3.65%	3.65%
Taxable, paid net
1-Year Guaranteed Income Bond – Issue 42	3.40%	3.45%
Taxable, paid net
3-Year Guaranteed Income Bond – Issue 36	3.45%	3.51%
Taxable, paid net
5-Year Guaranteed Income Bond – Issue 33	3.55%	3.61%
Taxable, paid net

Fixed tax-free rates***

New Issues from 2 April 2008

Rate pa	AER**
Children's Bonus Bonds – Issue 28	3.40%	3.40%

Guaranteed compound rate over 5 years

(including 5th anniversary bonus)

Equivalent	Equivalent
grossed up	grossed up
rate for	rate for
basic rate	higher rate
Rate pa/AER**	taxpayers†	taxpayers†
2-Year Fixed Interest
Savings Certificates	2.60%	3.25%	4.33%
41st Issue Guaranteed
compound rate over 2 years
5-Year Fixed Interest
Savings Certificates	2.70%	3.38%	4.50%
90th Issue Guaranteed
compound rate over 5 years
3-Year Index-linked	Index-	Index-	Index-
Savings Certificates	linking plus	linking plus	linking plus	16th Issue Guaranteed	0.25%	0.31%	0.42%
compound rate over 3 years
5-Year Index-linked	Index-	Index-	Index-
Savings Certificates	Linking plus	linking plus	linking plus	43rd Issue Guaranteed	0.35%	0.44%	0.58%
compound rate over 5 years
Variable tax-free rates***	Current	Current	New	New
Rate pa	AER**	Rate pa	AER**
Direct ISA New rate
from 6 April 2008	5.80%	5.80%	5.55%	5.55%
Guaranteed to be 0.30% above

the base rate until 5 April 2009

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 7 a.m. 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