Changes in rates for National Savings & Investments

Mon, 29 May 2006

NS&I (National Savings And Investments) is changing the interest rates on its fixed rate saving offers, Premium bonds and the Investment Account .

In addition to the changes, new issues of fixed rate products, for example the tax-free inflation beating Index-linked and Fixed Interest Savings Certificates will offer high rates of return on their date of commencement (20 May 2006).

A new three-year Index-linked Savings Certificates will offer an interest rates equivalent to 6.08% p.a. for higher rate taxpayers or 4.56% for basic taxpayers. Anyone aged 7 or over will be to invest from £100 to £15,000 per issue.

In premium bonds, the tax-free prize fund rate will decrease from 3.00% p.a. to 2.95% p.a. from 1 June 2006. The odds of winning a prize will remain level at 24,000 – 1. All prizes will remain free of UK capital gains and income taxes.

There will be over 1.27 million prizes issued each month although the prize fund is expected to fall from £76.6 million in May to £75.4 million in June.

Rates on the Investment Account have been reduced by 0.05% across all tiers.
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Investments Newsletter

Investments Newsletter