6-MONTH FIXED RATE SAVINGS BONDS—NEW INTEREST RATES

On and from 22nd December 1999, the gross rates of interest paid on Issue 2 6-month Fixed Rate Savings Bonds will be 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 repayment. The rates determined by whether the interest is paid monthly at maturity. Interest is paid net of tax.

	Gross Annual Rates
Capital value of Bond	Monthly interest option	Interest at maturity
£500 to £19,999.99	5.4%	5.55%
£20,000 to £49,999.99	5.6%	5.75%
£50,000 and above	5.75%	5.95%

2-YEAR FIXED INTEREST SAVINGS CERTIFICATES—NEW ISSUE

2nd Issue 2-Year Fixed Interest Savings Certificates went on sale on 22nd December 1999. A Certificate will grow in value at a guaranteed rate each year as follows:

Year 1	4.0%
Year 2	4.91%

If a Certificate is held for two years, these rates will give a tax-free and guaranteed return equal to 4.45% pa compound.

2-YEAR INDEX-LINKED SAVINGS CERTIFICATES—NEW ISSUE

2nd Issue 2-Year Index-linked Certificates went on sale on 22nd December 1999. 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 for year 1	+2.5% of Purchase price	=1st Anniversary Value
1st Anniversary Value	+Index-linking for year 2	+3.51% of 1st Anniversary Value	=2nd Anniversary Value

If a Certificate is held for two years, these rates will give a tax-free and guaranteed return equal to 3.0% pa compound in addition to index-linking.

2-YEAR PENSIONERS GUARANTEED INCOME BONDS—NEW SERIES

Series 4 2-year Pensioners Guaranteed Income Bonds went on sale on 22nd December 1999. The interest rate, fixed and guaranteed for the first two years a Bond is held, is 5.9% pa. The interest is paid gross and is taxable. Issued by National Savings on behalf of the Treasury