National Savings and Investments

Interest Rates

Fixed gross rates*

New Issues from 21 January 2009

Rate pa	AER**
1-Year Guaranteed Growth Bond – Issue 46	2.35%	2.35%
Taxable, paid net
3-Year Guaranteed Growth Bond – Issue 40	2.80%	2.80%
Taxable, paid net
5-Year Guaranteed Growth Bond – Issue 37	3.15%	3.15%
Taxable, paid net
1-Year Guaranteed Income Bond – Issue 46	2.25%	2.27%
Taxable, paid net
3-Year Guaranteed Income Bond – Issue 40	2.70%	2.73%
Taxable, paid net
5-Year Guaranteed Income Bond – Issue 37	3.05%	3.09%
Taxable, paid net

Fixed tax-free rates‡

New Issues from 21 January 2009

Rate pa	AER
Children's Bonus Bonds – Issue 32	2.85%	2.85%

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	1.90%	2.38%	3.17%
45th Issue Guaranteed
compound rate over 2 years
5-Year Fixed Interest
Savings Certificates	2.35%	2.94%	3.92%
94th Issue Guaranteed
compound rate over 5 years
Variable gross rates*	Current	Current	New	New
Rate pa	AER**	Rate pa	AER**
Income Bonds	£25,000+	2.70%	2.73%	2.20%	2.22%
New rates from 21 January 2009	Under £25,000	2.45%	2.48%	1.95%	1.97%
Investment Account	£50,000+	1.90%	1.90%	0.90%	0.90%
New rates from 21 January 2009	£25,000+	1.55%	1.55%	0.55%	0.55%
£10,000+	1.35%	1.35%	0.35%	0.35%
£5,000+	1.15%	1.15%	0.35%	0.35%
£500+	1.05%	1.05%	0.35%	0.35%
£1 to £500	1.00%	1.00%	0.35%	0.35%
Easy Access
Savings Account	£50,000+	2.20%	2.20%	1.20%	1.20%
New rates from 21 January 2009	£25,000+	1.95%	1.95%	0.95%	0.95%
£10,000+	1.70%	1.70%	0.70%	0.70%
£100+	1.45%	1.45%	0.45%	0.45%
Residual Account***
New rate from 21 January 2009	0.25%	0.25%	0.15%	0.15%
Variable tax-free rates‡	Current	Current	New	New
Rate pa	AER**	Rate pa	AER**
Direct ISA
New rate from 21 January 2009	3.30%	3.30%	2.30%	2.30%
Cash ISA
New rate from 21 January 2009	2.40%	2.40%	1.40%	1.40%
T Cash ISA
New rate from 21 January 2009	2.40%	2.40%	1.40%	1.40%
General Extension Rate††
New rate from 1 February 2009	0.51%	0.51%	0.15%	0.15%
*	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.
	These interest rate tiers have now been combined into one tier.
***	Where an NS&I product has been closed and we have been unsuccessful in our efforts to return the monies invested to our customer, such remaining holdings are transferred to the Residual Account. These can be interest bearing or non interest bearing.
‡	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.

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