Fixed Interest National Savings Certificates—New Issue

Forty-seventh Issue Savings Certificates go on sale from 16th October 1998. They will grow in value at a guaranteed rate each year as follows: Year 1—3.6 per cent; Year 2—3.75 per cent; Year 3—4.0 per cent; Year 4—4.2 per cent; Year 5—4.46 per cent.
  If a Certificate is held for five years, these rates will give a tax-free and guaranteed return equal to 4.0 per cent per annum compound.

Index-linked National Savings Certificate-—New Issue

Fourteenth Index-linked Issue Savings Certificates will go on sale from 16th October 1998. The value of a Certificate will move in line with the rate of inflation as measured by the Retail Prices Index, plus Extra Interest as follows:

Purchase price	+	Index-linking for year 1	+	1 per cent of Purchase price	=	1st Anniversary Value
1st Anniversary Value	+	Index-linking for year 2	+	1.25 per cent of 1st Anniversary Value	=	2nd Anniversary Value
2nd Anniversary Value	+	Index-linking for year 3	+	1.5 per cent of 2nd Anniversary Value	=	3rd Anniversary Value
3rd Anniversary Value	+	Index-linking for year 4	+	2.3 per cent of 3rd Anniversary Value	=	4th Anniversary Value
4th Anniversary Value	+	Index-linking for year 5	+	4.0 per cent of 4th Anniversary Value	=	5th Anniversary Value

  If a Certificate is held for five years, these rates will give a tax-free and guaranteed return equal to 2.0 per cent per annum compound in addition to index-linking.

National Savings FIRST Option Bonds—New Intesest Rate

  On and from 16th October 1998 the guaranteed gross interest rate for the first year a Bond is held will be 6.25 per cent p.a. Assuming a rate of tax of 20 per cent., the net rate credited to a Bond will be 5.0 per cent p.a. Bonds of £20,000 or more also earn bonus interest of 0.25 per cent p.a. gross (0.2 per cent net).

National Savings Capital Bonds—New Series

  Series M Capital Bonds will go on sale from 16th October 1998. Bonds held for five years will grow in value at a guaranteed rate each year as follows: Year 1—4.5 per cent; Year 2—4.7 per cent; Year 3—5.0 per cent; Year 4—5.5 per cent; Year 5—5.56 per cent. These rates will give a guaranteed return equal to 5.0 per cent per annum compound. The interest is credited gross and is taxable.

National Savings Children’s Bonus Bonds—-New Issue

  Issue K Children’s Bonus bonds will go on sale from 16th October 1998. For the first five years each £25 unit will earn interest at 4 per cent per annum compound. On the fifth anniversary of purchase it also earns a bonus of £1.50 (6.0 per cent of purchase price). At these rates a Bond will earn a tax-free return equal to 5.0 per cent per annum compound over the first five years.

National Savings Pensioners Guaranteed Income Bonds—New Series

  Series 6 Pensioners Guaranteed Income Bonds will go on sale from 16th October 1998. The interest rate, fixed and guaranteed for the first five years a Bond is held, is 5.0 per cent per annum. The interest is paid gross and is taxable.

National Savings Income Bonds—Notice of New Interest Rate

  On and from 27th November 1998 the variable “Treasury Rate” of interest payable on Income Bonds will be 7.0 per cent p.a 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 per cent p.a. gross.

National Savings Investment Accounts—Notice of New Interest Rates

  On and from 30th October 1998 the variable gross rates of interest payable on Investment Accounts will be as follows:

Balance in Account	Rate of Interest
up to £499.99	5.0 per cent p.a.
£500 to £2,499.99	5.25 per cent p.a.
£2,500 to £4,999.99	5.5 per cent p.a.
£5,000 to £9,999.99	5.75 per cent p.a.
£10,000 to £24,999.99	6.0 per cent p.a.
£25,000 to £49,999.99	6.25 per cent p.a.
£50,000 and above	6.75 per cent p.a.

National Savings Treasurer’s Accounts—Notice of New Interest Rates

  On and from 30th October 1998 the variable gross rates of interest payable on Treasurer’s Accounts will be as follows: £10,000 to £24,999.99—6.0 per cent p.a.; £25,000 to £99,999.99—6.25 per cent p.a.; £100,000 and above—6.7 per cent p.a.
Issued by National Savings on behalf of the Treasury.