National Savings
National Savings and Investments
2-YEAR FIXED INTEREST NATIONAL SAVINGS CERTIFICATES—NEW ISSUE
18th Issue 2-year Fixed Interest Savings Certificates went on sale on 21 February 2003. A Certificate will grow in value at a guaranteed rate each year as follows: Year 1 2.15% Year 2 2.66% If a Certificate is held for two years, these rates will give a tax-free and guaranteed return equal to 2.40% pa compound.
5-YEAR FIXED INTEREST NATIONAL SAVINGS CERTIFICATES—NEW ISSUE
68th Issue 5-year Fixed Interest Savings Certificates went on sale on 21 February 2003. A Certificate will grow in value at a guaranteed rate each year as follows: Year 1 2.35% Year 2 2.45% Year 3 2.65% Year 4 2.85% Year 5 3.21% If a Certificate is held for five years, these rates will give a tax-free and guaranteed return equal to 2.70% pa compound.
5-YEAR INDEX-LINKED NATIONAL SAVINGS CERTIFICATES—NEW ISSUE
27th Issue 5-year Index-linked Savings Certificates went on sale on 21 February 2003. 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 | + | 0.45% of Purchase price | = | 1st Anniversary Value |
| 1st Anniversary Value | + | Index-linking for year 2 | + | 0.55% of 1st Anniversary Value | = | 2nd Anniversary Value |
| 2nd Anniversary Value | + | Index-linking for year 3 | + | 0.75% of 2nd Anniversary Value | = | 3rd Anniversary Value |
| 3rd Anniversary Value | + | Index-linking for year 4 | + | 0.95% of 3rd Anniversary Value | = | 4th Anniversary Value |
| 4th Anniversary Value | + | Index-linking for year 5 | + | 1.31% of 4th Anniversary Value | = | Maturity Value |
NATIONAL SAVINGS AND INVESTMENTS FIXED RATE SAVINGS BONDS—NEW ISSUES
New Issues of Fixed Rate Savings Bonds went on sale on 21 February 2003 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 | Gross Annual Rates | |
| of Bond | Monthly Interest | Annual Interest | |
| option | option | ||
| 1-year | £500 to £19,999.99 | 2.65% | 2.70% |
| Issue 19 | £20,000 to £49,999.99 | 2.80% | 2.85% |
| £50,000 and above | 3.00% | 3.05% | |
| 3-year | £500 to £19,999.99 | 3.00% | 3.05% |
| Issue 12 | £20,000 to £49,999.99 | 3.20% | 3.25% |
| £50,000 and above | 3.40% | 3.45% | |
| 5-year | £500 to £19,999.99 | 3.30% | 3.35% |
| Issue 10 | £20,000 to £49,999.99 | 3.40% | 3.50% |
| £50,000 and above | 3.60% | 3.70% |
NATIONAL SAVINGS AND INVESTMENTS PENSIONERS GUARANTEED INCOME BONDS 1-YEAR TERM—NEW SERIES
Series 16 1-year Pensioners Guaranteed Income Bonds went on sale on 21 February 2003. The interest rate, fixed and guaranteed for the first year a Bond is held, is 3.00% pa gross. The interest is paid gross and is taxable.
NATIONAL SAVINGS AND INVESTMENTS PENSIONERS GUARANTEED INCOME BONDS 2-YEAR TERM—NEW SERIES
Series 22 2-year Pensioners Guaranteed Income Bonds went on sale on 21 February 2003. The interest rate, fixed and guaranteed for the first two years a Bond is held, is 3.15% pa gross. The interest rate is paid gross and is taxable.
NATIONAL SAVINGS AND INVESTMENTS PENSIONERS GUARANTEED INCOME BONDS 5-YEAR TERM—NEW SERIES
Series 31 5-year Pensioners Guaranteed Income Bonds went on sale on 21 February 2003. The interest rate, fixed and guaranteed for the first five years a Bond is held, is 3.60% pa gross. The interest is paid gross and is taxable.
NATIONAL SAVINGS AND INVESTMENTS CHILDREN’S BONUS BONDS—NEW ISSUE
Issue 6 Children’s Bonus Bonds went on sale on 21 February 2003. For the first five years each £25 unit will earn interest at 2.50% pa compound. On the fifth anniversary of purchase it also earns a bonus of £1.19 (4.76% of purchase price). At these rates a bond will earn a tax-free return equal to 3.35% pa compound over the first five years.
NATIONAL SAVINGS AND INVESTMENTS INDIVIDUAL SAVINGS ACCOUNTS—NOTICE OF NEW INTEREST RATES
On and from 1 March 2003 the variable tax-free rate of interest payable on individual Savings Accounts (cash mini and TESSA-only accounts) will be 3.80% pa.
NATIONAL SAVINGS AND INVESTMENTS ORDINARY ACCOUNTS—NOTICE OF NEW INTEREST RATES
On and from 1 March 2003 the variable rates of interest payable on Ordinary Accounts will be as follows:
| Standard rate | 0.25% pa |
| Higher rate | 0.35% pa |
NATIONAL SAVINGS AND INVESTMENTS INVESTMENT ACCOUNTS—NOTICE OF NEW INTEREST RATES
On and from 7 March 2003 the variable gross rates of interest payable on Investment Accounts will be as follows:
| Balance in Account | Rate of Interest |
| up to £499.99 | 2.20% pa |
| £500 to £4,999.99 | 2.30% pa |
| £5,000 to £9,999.99 | 2.40% pa |
| £10,000 to £24,999.99 | 2.60% pa |
| £25,000 to £49,999.99 | 2.80% pa |
| £50,000 and above | 3.20% pa |
NATIONAL SAVINGS AND INVESTMENTS TREASURER’S ACCOUNTS—NOTICE OF NEW INTEREST RATES
On and from 7 March 2003 the variable gross rates of interest payable on Treasurer’s Accounts will be as follows:
| £10,000 to £24,999.99 | 2.60% pa |
| £25,000 to £99,999.99 | 2.80% pa |
| £100,000 and above | 3.20% pa |
PREMIUM SAVINGS BONDS—NOTICE OF NEW INTEREST RATE AND CHANGES TO SCALE OF PRIZES AND PRIZE VALUE BANDS
On and from 1 June 2003 the rate of interest specified for determining the amount of the prize fund will be 2.25% pa. In respect of each prize draw there will be one prize for every 30,000 bond units eligible for inclusion in the draw. The monthly prize fund will be shared between the higher, medium and lower bands as follows: 5%, 5% and 90% respectively (subject to any adjustments required by the terms and conditions).
NATIONAL SAVINGS AND INVESTMENTS INCOME BONDS—NOTICE OF NEW INTEREST RATE
On and from 4 April 2003 the variable “Treasury Rate” of interest payable on Income Bonds will be 3.25% 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 AND INVESTMENTS—NEW GENERAL EXTENSION RATE
On and from 1 March 2003 the variable rate of interest for National Savings Certificates (including Yearly Plan Certificates) earning the General Extension Rate will be 1.29% pa tax-free. Issued by National Savings and Investments on behalf of the Treasury