NS&I

PUBLIC NOTICE

FIRST OPTION BONDS:

NO FURTHER EXTENSION TERMS WILL BE OFFERED

From 10 October 2011, customers holding maturing NS&I FIRST Option Bonds will no longer be offered further extension terms. However, customers can continue to hold their Bonds until they reach their maturity dates. Until then, their Bonds will continue to earn interest as normal at the same guaranteed rates. As with all of NS&I’s accounts and investments, money invested in FIRST Option Bonds remains 100% secure, backed by HM Treasury.

NS&I will write to all FIRST Option Bond customers within the next week to give them advance notice of the change.

NS&I will also write to customers again before their Bonds are due to mature, offering them the opportunity to reinvest in an NS&I Guaranteed Growth Bond.

This is a similar investment with fixed rates of interest for set terms.

Until customers receive this letter, there’s no need to take any action.

Why make this change?

NS&I stopped selling FIRST Option Bonds in 1999. However, existing customers have since then been offered extension terms annually, permitting them to continue to hold their Bonds beyond their maturity dates. Very few people now hold these Bonds, so it is no longer cost effective to offer further extension terms.

If you would like further information on our savings or investments please call free on 0500 007 007. Your call will be taken by one of NS&I’s award-winning UK customer service team. We’re available every day from 7am till midnight. Calls from mobiles may not be free.

Calls may be recorded.

Or visit our website at nsandi.com

National Savings and Investments is backed by HM Treasury

Issued by NS&I on behalf of HM Treasury

National Savings and Investments is a Trade Mark of the Director of Savings