NATIONAL SAVINGS AND INVESTMENTS

2-YEAR FIXED INTEREST NATIONAL SAVINGS CERTIFICATES—NEW ISSUE

21st Issue 2-year Fixed Interest Savings Certificates went on sale on 25 September 2003. A Certificate will grow in value at a guaranteed rate each year as follows:

Year 1	2.65%
Year 2	2.76%

If a Certificate is held for two years, these rates will give a tax-free and guaranteed return equal to 2.70% pa compound.

5-YEAR FIXED INTEREST NATIONAL SAVINGS CERTIFICATES—NEW ISSUE

71st Issue 5-year Fixed Interest Savings Certificates went on sale on 25 September 2003. A Certificate will grow in value at a guaranteed rate each year as follows:

Year 1	2.65%
Year 2	2.75%
Year 3	2.95%
Year 4	3.15%
Year 5	3.51%

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

3-YEAR INDEX-LINKED NATIONAL SAVINGS CERTIFICATES—NEW ISSUE

3rd Issue 3-year Index-linked Savings Certificates went on sale on 25 September 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	+0.75% of   Purchase price	=1st   Anniversary   Value
1st Anniversary Value	+Index-linking   for year 2	+0.95% of 1st   Anniversary Value	=2nd   Anniversary   Value
2nd Anniversary Value	+Index-linking   for year 3	+1.16% of 1st   Anniversary Value	=Maturity   Value

If a Certificate is held for three years, these rates will give a tax-free and guaranteed return equal to 0.95% pa compound in addition to index-linking.

5-YEAR INDEX-LINKED SAVINGS CERTIFICATES—NEW ISSUE

30th Issue 5-year Index-linked Savings Certificates went on sale on 25 September 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	+0.65% of   Purchase price	=1st   Anniversary   Value
1st Anniversary Value	+Index-linking   for year 2	+0.85% of 1st   Anniversary Value	=2nd   Anniversary   Value
2nd Anniversary Value	+Index-linking   for year 3	+1.05% of 2nd   Anniversary Value	=3rd   Anniversary   Value
3rd Anniversary Value	+Index-linking   for year 4	+1.25% of 3rd   Anniversary Value	=4th   Anniversary   Value
4th Anniversary Value	+Index-linking   for year 5	+1.46% 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 1.05% pa compound in addition to index-linking.

NATIONAL SAVINGS AND INVESTMENTS FIXED RATE SAVINGS BONDS—NEW ISSUES

New Issues of Fixed Rate Savings Bonds went on sale on 25 September 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 orginal 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	Captial value	Gross Annual Rates
of Bond	Monthly interest	Annual interest
option	option
1-year	£500 to £19,999.99	3.05%	3.10%
Issue 22	£20,000 to £49,999.99	3.20%	3.25%
£50,000 and above	3.40%	3.45%
3-year	£500 to £19,999.99	3.45%	3.55%
Issue 15	£20,000 to £49,999.99	3.65%	3.75%
£50,000 and above	3.85%	3.95%
5-year	£500 to £19,999.99	3.70%	3.80%
Issue 13	£20,000 to £49,999.99	3.85%	3.95%
£50,000 and above	4.05%	4.15%

NATIONAL SAVINGS AND INVESTMENTS PENSIONERS GUARANTEED INCOME BONDS 1-YEAR TERM—NEW SERIES

Series 19 1-year Pensioners Guaranteed Income Bonds went on sale on 25 September 2003. The interest rate, fixed and guaranteed for the first year a Bond is held, is 3.40% pa gross. The interest is paid gross and is taxable.

NATIONAL SAVINGS AND INVESTMENTS PENSIONERS GUARANTEED INCOME BONDS 2-YEAR TERM—NEW SERIES

Series 25 2-year Pensioners Guaranteed Income Bonds went on sale on 25 September 2003. The interest rate, fixed and guaranteed for the first two years a Bond is held, is 3.60% pa gross. The interest is paid gross and is taxable.

NATIONAL SAVINGS AND INVESTMENTS PENSIONERS GUARANTEED INCOME BONDS 5-YEAR TERM—NEW SERIES

Series 34 5-year Pensioners Guaranteed Income Bonds went on sale on 25 September 2003. The interest rate, fixed and guaranteed for the first five years a Bond is held, is 4.00% pa gross. The interest is paid and is taxable.

NATIONAL SAVINGS AND INVESTMENTS CHILDREN’S BONUS BONDS—NEW ISSUE

Issue 9 Children’s Bonus Bonds went on sale on 25 September 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 £1.84 (7.36% of purchase price). At these rates a Bond will earn a tax-free return equal to 3.80% pa compound over the first five years.

NATIONAL SAVINGS AND INVESTMENTS CAPITAL BONDS—NEW SERIES

Series 13 Capital Bonds went on sale on 25 September 2003. A Bond will grow in value at a guaranteed gross rate each year as follows:

Year 1	3.45%
Year 2	3.75%
Year 3	4.05%
Year 4	4.35%
Year 5	4.66%

If a Bond is held for five years, these rates will give a guaranteed return equal to 4.05% pa compound. The interest is credited gross and is taxable. Issued by the National Savings and Investments on behalf of the Treasury.