National Savings and Investments

2-year Fixed Interest National Savings Certificates – New Issue

16th Issue 2-year Fixed Interest Savings Certificates went on sale on 28th November 2002. A Certificate will grow in value at a guaranteed rate each year as follows:

	Year 1	2.50%
	Year 2	3.01 %

If a Certificate is held for two years, these rates will give a tax-free and guaranteed return equal to 2.75% pa compound.

5-year Fixed Interest National Savings Certificates – New Issue

66th Issue 5-year Fixed Interest Savings Certificates went on sale on 28th November 2002. A Certificate will grow in value at a guaranteed rate each year as follows:

	Year 1	2.70%
	Year 2	2.80%
	Year 3	3.00%
	Year 4	3.20%
	Year 5	3.56%

If a Certificate is held for five years, these rates will give a tax-free and guaranteed return equal to 3.05% pa compound.

2-year Index-linked National Savings Certificates – New Issue

14th Issue 2-year Index-linked Savings Certificates went on sale on 28th November 2002. 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	+	0.75%	=	1st Anniver-
		for year 1		Purchase Price	sary Value
1st Anniver-	+	Index-linking	+	1.26% of 1st	=	Maturity
sary Value		for year 2		Anniversary		Value
				Value

If a Certificate is held for two years, these rates will give a tax-free and guaranteed return equal to 1.00% pa compound in addition to index-linking.

Index-linked National Savings Certificates –

New Issue

25th Issue 5-year Index-linked Savings Certificates went on sale on 28th November 2002. 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	+	1.10%	=	1st Anniver-
		for year 1		Purchase Price	sary Value
1st Anniver-	+	Index-linking	+	1.20% of 1st	=	2nd Anniver
-sary Value		for year 2		Anniversary		sary Value
				Value
2nd Anniver-	+	Index-linking	+	1.40% of 2nd	=	3rd Anniver-
sary Value		for year 3		Anniversary		sary Value
				Value
3rd Anniver-	+	Index-linking	+	1.60% of 3rd	=	4th Anniver-
sary Value		for year 4		Anniversary		sary Value
				Value
4th Anniver-	+	Index-linking	+	1.96% of 4th	=	Maturity
sary Value		for year 5		Anniversary		Value
				Value

If a Certificate is held for five years, these rates will give a tax-free and guaranteed return equal to 1.45% pa compound in addition to index-linking.

National Savings and Investments Fixed Rate Savings Bonds – New Issues

New Issues of Fixed Rate Savings Bonds went on sale on 28th November 2002 as shown in the table below. The rate of interest earned by a Bond will be determined by its capital value at any time - the original investment plus any interest added to the Bond less any repayments. The rate is determined by whether the interest is paid monthly or at maturity. Interest is paid net of tax.

Term	Capital value		Gross Annual Rates
	of Bond	Monthly	Annual
		interest option	interest option
1-year	£500 to £19,999.99	3.15%	3.20%
Issue 17	£20,000 to £49,999.99	3.30%	3.35%
	£50,000 and above	3.45%	3.55%
3-year	£500 to £19,999.99	3.45%	3.55%
Issue 10	£20,000 to £49,999.99	3.65%	3.75%
	£50,000 and above	3.85%	3.95%
5-year	£500 to £19,999.99	3.70%	3.80%
Issue 8	£20,000 to £49,999.99	3.85%	3.95%
	£50,000 and above	4.05%	4.15%

National Savings and Investments Pensioners Guaranteed Income Bonds

1-year Term – New Series

Series 14 1-year Pensioners Guaranteed Income Bonds went on sale on 28th November 2002. The interest rate, fixed and guaranteed for the first year a Bond is held, is 3.45% pa gross. The interest is paid gross and is taxable.

National Savings and Investments Pensioners Guaranteed Income Bonds

2-year Term – New Series

Series 20 2-year Pensioners Guaranteed Income Bonds went on sale on 28th November 2002. The interest rate, fixed and guaranteed for the first two years a Bond is held, is 3.65% pa gross. The interest is paid gross and is taxable.

National Savings and Investments Pensioners Guaranteed Income Bonds

5-year Term – New Series

Series 29 5-year Pensioners Guaranteed Income Bonds went on sale on 28th November 2002. The interest rate, fixed and guaranteed for the first five years a Bond is held is 4.05% pa gross. The interest is paid gross and is taxable.

Issued by National Savings and Investments

on behalf of the Treasury