National Savings
2-YEAR FIXED INTEREST NATIONAL SAVINGS CERTIFICATES—NEW ISSUE
11th Issue 2-Year Fixed Interest Savings Certificates went on sale on 30 November
2001. A Certificate will grow in value at a guaranteed rate each year as follows:
| Year 1 | 2.65% |
| Year 2 | 3.26% |
5-YEAR FIXED INTEREST NATIONAL SAVINGS CERTIFICATES—NEW ISSUE
62nd Issue 5-Year Fixed Interest Savings Certificates went on sale on 30 November
2001. A Certificate will grow in value at a guaranteed rate each year as follows:
| Year 1 | 2.90% |
| Year 2 | 3.00% |
| Year 3 | 3.20% |
| Year 4 | 3.40% |
| Year 5 | 3.76% |
If a Certificate is held for five years, these rates will give a tax-free and guaranteed return equal to 3.25% pa compound.
2-YEAR INDEX-LINKED NATIONAL SAVINGS CERTIFICATES—NEW ISSUE
10th Issue 2-Year Index-linked Savings Certificates went on sale on 30 November 2001.
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 | + | 1.0% of Purchase price | = | 1st Anniversary Value |
| 1st Anniversary Value | + | Index-linking for year 2 | + | 1.61% of 1st Anniversary Value | = | Maturity Value |
If a Certificate is held for two years, these rates will give a tax-free and guaranteed return equal to 1.30% pa compound in addition ot index-linking.
5-YEAR INDEX-LINKED NATIONAL SAVINGS CERTIFICATES—NEW ISSUE
22nd Issue 5-Year Index-linked Savings Certificates went on sale on 30 November 2001.
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 | + | 1.00% of Purchase price | = | 1st Anniversary Value |
| 1st Anniversary Value | + | Index-linking for year 2 | + | 1.10% of 1st Anniversary Value | = | 2nd Anniversary Value |
| 2nd Anniversary Value | + | Index-linking for year 3 | + | 1.30% of 2nd Anniversary Value | = | 3rd Anniversary Value |
| 3rd Anniversary Value | + | Index-linking for year 4 | + | 1.60% of 3rd Anniversary Value | = | 4th Anniversary Value |
| 4th Anniversary Value | + | Index-linking for year 5 | + | 2.01% of 4th Anniversary Value | = | Maturity Value |
If a Certificate is held for five years, these rates will give a tax-free and guaranteed return equal to 1.40% pa compound in addition to index-linking.
NATIONAL SAVINGS CAPITAL BONDS—NEW SERIES
Series 4 Capital Bonds went on sale on 30 November 2001. Bonds held for five years
will grow in value at a guaranteed gross rate each year as follows:
| Year 1 | 3.80% |
| Year 2 | 4.10% |
| Year 3 | 4.40% |
| Year 4 | 4.70% |
| Year 5 | 5.01% |
These rates will give a guaranteed return equal to 4.40% pa compound. The interest is credited gross and is taxable.
NATIONAL SAVINGS CHILDREN’S BONUS BONDS—NEW ISSUE
Issue 1 Children’s Bonus Bonds went on sale on 30 November 2001. For the first five
years each £25 unit will earn interest at 2.5% pa compound. On the fifth anniversary
of purchase it also earns a bonus of £2.20 (8.8% of purchase price). At these rates
a Bond will earn a tax-free return equal to 4.05% pa compound over the first five
years.
NATIONAL SAVINGS FIXED RATE SAVINGS BONDS—NEW ISSUES
New Isssues of Fixed Rate Savings Bonds went on sale on 30 November 2001 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 of Bond | Gross Annual Rates |
Monthly interest option | Interest at maturity |
| 1 year | £500 to £19,999.99 | 3.40% | 3.45% | |
| Issue 11 | £20,000 to £49,999.99 | 3.55% | 3.65% | |
| £50,000 and above | 3.75% | 3.85% | ||
| 3 years | £500 to £19,999.99 | 3.80% | 3.90% | |
| Issue 4 | £20,000 to £49,999.99 | 4.00% | 4.10% | |
| £50,000 and above | 4.20% | 4.30% | ||
| 5 years | £500 to £19,999.99 | 3.95% | 4.05% | |
| Issue 2 | £20,000 to £49,999.99 | 4.15% | 4.25% | |
| £50,000 and above | 4.35% | 4.45% |
NATIONAL SAVINGS PENSIONERS GUARANTEED INCOME BONDS 1-YEAR TERM—NEW SERIES
Series 8 1-year Pensioners Guaranteed Income Bonds went on sale on 30 November 2001.
The interest rate, fixed and guaranteed for the first year a Bond is held, is 3.70%
pa gross. The interest is paid gross and is taxable.
NATIONAL SAVINGS PENSIONERS GUARANTEED INCOME BONDS 2-YEAR TERM—NEW SERIES
Series 14 2-year Pensioners Guaranteed Income Bonds went on sale on 30 November 2001.
The interest rate, fixed and guaranteed for the first two years a Bond is held, is
3.90% pa gross. The interest is paid gross and is taxable.
NATIONAL SAVINGS PENSIONERS GUARANTEED INCOME BONDS 5-YEAR TERM—NEW SERIES
Series 23 5-year Pensioners Guaranteed Income Bonds went on sale on 30 November 2001.
The interest rate, fixed and guaranteed for the first five years a Bond is held, is
4.30% pa gross. The interest is paid gross and is taxable.
NATIONAL SAVINGS INDIVIDUAL SAVINGS ACCOUNTS—NOTICE OF NEW INTEREST RATES
On and from 3 December 2001 the variable tax-free rate of interest payable on Individual
Savings Accounts (cash mini and TESSA-only) will be 4.15% pa.
NEW GENERAL EXTENSION RATE
On and from 1 December 2001 the variable rate of interest for National Savings Certificates
(including Yearly Plan Certificates) earning the General Extension Rate will be 1.5%
pa tax-free.
NATIONAL SAVINGS INVESTMENT ACCOUNTS—NOTICE OF NEW INTEREST RATES
On and from 14 December 2001 the variable gross rates of interest payable on Investment
Accounts will be as follows:
| Balance in Account | Rate of Interest |
| up to £499.99 | 2.60% pa |
| £500 to £4,999.99 | 2.70% pa |
| £5,000 to £9,999.99 | 2.80% pa |
| £10,000 to £24,999.99 | 3.00% pa |
| £25,000 to £49,999.99 | 3.20% pa |
| £50,000 and above | 3.60% pa |
NATIONAL SAVINGS TREASURER’S ACCOUNTS—NOTICE OF NEW INTEREST RATES
On and from 14 December 2001 the variable gross rates of interest payable on Treasurer’s
Accounts will be as follows:
| £10,000 to £24,999.99 | 3.00% pa |
| £25,000 to £99,999.99 | 3.20% pa |
| £100,000 and above | 3.60% pa |
NATIONAL SAVINGS INCOME BONDS—NOTICE OF NEW INTEREST RATE
On and from 11 January 2002 the variable “Treasury Rate” of interest payable on Income
Bonds will be 3.55% pa 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% pa gross.
NATIONAL SAVINGS DEPOSIT BONDS—NOTICE OF NEW INTEREST RATE
On and from 11 January 2002 the rate of interest payable on Deposit Bonds will be
3.55% pa gross.
PREMIUM SAVINGS BONDS—NOTICE OF NEW INTEREST RATE AND CHANGE TO SCALE OF PRIZES
On and from 1 March 2002 the rate of interest specified for determining the amount
of the prize fund will be 2.40% pa. In respect of each prize draw there will be one
prize for every 28,500 bond units eligible for inclusion in the draw.
Issued by National Savings on behalf of the Treasury