FIXED INTEREST NATIONAL SAVINGS CERTIFICATES—NEW ISSUE

50th Issue Savings Certificates go on sale from 19th March 1999. They will grow in value at a guaranteed rate each year as follows: Year 1        3.2% Year 2        3.3% Year 3        3.4% Year 4        3.6% Year 5        4.01% If a Certificate is held for five years, these rates will give a tax-free and guaranteed return equal to 3.5% per annum compound.

NATIONAL SAVINGS FIRST OPTION BONDS—NEW INTEREST RATE

On and from 19th March 1999 the guaranteed gross interest rate for the first year a Bond is held will be 4.65% per annum. Assuming a rate of tax of 20%, the net rate credited to a Bond will be 3.72% per annum. Bonds of £20,000 or more also earn bonus interest of 0.25% per annum gross (0.2% net).

NATIONAL SAVINGS CAPITAL BONDS—NEW SERIES

Series P Capital Bonds will go on sale from 19th March 1999. Bonds held for five years will grow in value at a guaranteed rate each year as follows: Year 1        4.0% Year 2        4.25% Year 3        4.5% Year 4        5.0% Year 5        5.51% These rates will give a guaranteed return equal to 4.65% per annum compound. The interest is credited gross and is taxable.

NATIONAL SAVINGS CHILDREN’S BONUS BONDS—NEW ISSUE

Issue N Children’s Bonus bonds will go on sale from 19th March 1999. For the first five years each £25 unit will earn interest at 3.5% per annum compound. On the fifth anniversary of purchase it also earns a bonus of £1.68 (6.72% of purchase price). At these rates a Bond will earn a tax-free return equal to 4.65% per annum compound over the first five years.

NATIONAL SAVINGS PENSIONERS GUARANTEED INCOME BONDS—NEW SERIES

Series 9 Pensioners Guaranteed Income Bonds will go on sale from 19th March 1999. The interest rate, fixed and guaranteed for the first five years a Bond is held, is 4.6% per annum. The interest is paid gross and is taxable.

NATIONAL SAVINGS INDIVIDUAL SAVINGS ACCOUNTS-LAUNCH DATE AND RATE OF INTEREST

On and from 6th April 1999 the variable tax-free rate of interest payable on Individual Savings Accounts will be 5.75% per annum. Issued by National Savings on behalf of the Treasury.