National Savings

National Savings and Investments

INDEX-LINKED NATIONAL SAVINGS

MOVEMENT OF THE UNITED KINGDOM GENERAL INDEX OF RETAIL PRICES

For the purposes of revaluing on repayment Index-linked National Savings Certificates (Retirement Issue, 2nd, 3rd, 4th, 5th, 6th, 7th, 8th and 9th Index-linked Issues) and contributions under Save As You Earn savings contracts (Third Issue), the Index figure issued by the Office for National Statistics in the month of February 2009 for the month of January 2009, and applicable to the month of March 2009 is 210.1. This figure is based on the revised reference base of 100 adopted in January 1987. In accordance with the relevant prospectuses a Notional Index figure of 828.8 has been calculated and will apply to Index-linked Savings Certificates purchased in March 1987 or earlier and SAYE contributions which were due for payment and made in February 1987 or earlier.

Issued by National Savings and Investments on behalf of the Treasury

NS&I

INTEREST RATES

Fixed gross rates* New Issues from 19 February 2009	Rate pa	AER**
1-Year Guaranteed Growth Bond – Issue 47 Taxable, paid net	1.00%	1.00%
3-Year Guaranteed Growth Bond – Issue 41 Taxable, paid net	1.75%	1.75%
5-Year Guaranteed Growth Bond – Issue 38 Taxable, paid net	2.60%	2.60%
1-Year Guaranteed Income Bond – Issue 47 Taxable, paid net	1.00%	1.00%
3-Year Guaranteed Income Bond – Issue 41 Taxable, paid net	1.70%	1.71%
5-Year Guaranteed Income Bond – Issue 38 Taxable, paid net	2.55%	2.58%

Fixed tax-free rates‡ New Issues from 19 February 2009	Rate pa	AER **
Children’s Bonus Bonds – Issue 33 Guaranteed compound rate over 5 years (including 5th anniversary bonus)	2.30%	2.30%
Rate pa/AER**	Equivalent grossed up rate for basic rate taxpayers†	Equivalent grossed up rate for higher rate taxpayers†
2-Year Fixed Interest Savings Certificates - 46th Issue Guaranteed compound rate over 2 years	0.95%	1.19%	1.58%
5-Year Fixed Interest Savings Certificates - 95th Issue Guaranteed compound rate over 5 years	1.90%	2.38%	3.17%

Variable gross rates*	Current Rate pa	Current AER**	New Rate pa	New AER**
Income Bonds	£25,000+	2.20%	2.22%	1.45%	1.46%
New rates from 19 February 2009	£500 - £24,999	1.95%	1.97%	1.20%	1.21%
Investment Account	£50,000+	0.90%	0.90%	0.50%	0.50%
New rates from 19 February 2009	£25,000+◊	0.55%	0.55%	0.40%	0.40%
£10,000+◊	0.35%	0.35%	0.40%	0.40%
£5,000+↔	0.35%	0.35%	0.30%	0.30%
£500+↔	0.35%	0.35%	0.30%	0.30%
£1 to £500↔	0.35%	0.35%	0.30%	0.30%
Easy Access Savings Account	£50,000+	1.20%	1.20%	0.70%	0.70%
New rates from 19 February 2009	£25,000+◊	0.95%	0.95%	0.45%	0.45%
£10,000+◊	0.70%	0.70%	0.45%	0.45%
£100+	0.45%	0.45%	0.30%	0.30%

Variable tax-free rates‡	Current Rate pa	Current AER**	New Rate pa	New AER**
Direct ISA New rate from 19 February 2009	2.30%	2.30%	1.80%	1.80%
Cash ISA New rate from 19 February 2009	1.40%	1.40%	0.90%	0.90%
T Cash ISA New rate from 19 February 2009	1.40%	1.40%	0.90%	0.90%

* 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.

◊ These interest rate tiers have now been combined into one tier.

‡ 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.

If you would like further information on our savings and investments please call 0845 964 5000.

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National Savings and Investments is backed by HM Treasury.