National Savings
The following notice is in substitution for that which appeared on page 11446 of The London Gazette dated 22nd October 1998
Fixed Interest National Savings Certificates—New Issue
47th Issue Savings Certificates go on sale from 16th October 1998. They will grow in value at a guaranteed rate each year as follows:
| Year 1 | 3.6 per cent |
| Year 2 | 3.75 per cent |
| Year 3 | 4.0 per cent |
| Year 4 | 4.2 per cent |
| Year 5 | 4.46 per cent |
Index-linked National Savings Certificates—New Issue
14th Index-linked Issue Savings Certificates will go on sale from 16th October 1998. The value of a Certificate will move in line with the rate of inflation as measured by the Retail Prices Index, plus Extra Interest as follows:
| Purchase price | + | Index-linking | + | 1% of | = | 1st Anniversary |
| for year 1 | Purchase price | Value | ||||
| 1st Anniversary | + | Index-linking | + | 1.25% of 1st | = | 2nd Anniversary |
| Value | for year 2 | Anniversary Value | Value | |||
| 2nd Anniversary | + | Index-linking | + | 1.5% of 2nd | = | 3rd Anniversary |
| Value | for year 3 | Anniversary Value | Value | |||
| 3rd Anniversary | + | Index-linking | + | 2.3% of 3rd | = | 4th Anniversary |
| Value | for year 4 | Anniversary Value | Value | |||
| 4th Anniversary | + | Index-linking | + | 4.0% of 4th | = | 5th Anniversary |
| Value | for year 5 | Anniversary Value | Value |
National Savings FIRST Option Bonds—New Interest Rate
On and from 16th October 1998 the guaranteed gross interest rate for the first year a Bond is held will be 6.25 per cent per annum. Assuming a rate of tax of 20 per cent, the net rate credited to a Bond will be 5 per cent per annum. Bonds of £20,000 or more also earn bonus interest of 0.25 per cent per annum gross (0.2 per cent net).
National Savings Capital Bonds—New Series
Series M Capital Bonds will go on sale from 16th October 1998. Bonds held for five years will grow in value at a guaranteed rate each year as follows:
| Year 1 | 4.5 per cent |
| Year 2 | 4.7 per cent |
| Year 3 | 5.0 per cent |
| Year 4 | 5.25 per cent |
| Year 5 | 5.56 per cent |
National Savings Children’s Bonus Bonds—New Issue
Issue K Children’s Bonus bonds will go on sale from 16th October 1998. For the first five years each £25 unit will earn interest at 4 per cent per annum compound. On the fifth anniversary of purchase it also earns a bonus of £1.50 (6 per cent of purchase price). At these rates a Bond will earn a tax-free return equal to 5 per cent per annum compound over the first five years.
National Savings Pensioners Guaranteed Income bonds—New Series
Series 6 Pensioners Guaranteed Income bonds will go on sale from 16th October 1998. the interest rate, fix and guaranteed for the first five years a Bond is held, is 5 per cent per annum.
National Savings Income Bonds—Notice of New Interest Rate
On and from 27th November 1998 the variable “Treasury Rate” of interest payable on Income Bonds will be 7 per cent per annum 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 per cent per annum gross.
National Savings Investment Accounts—Notice of New Interest Rates
On and from 30th October 1998 the variable gross of interest payable on Investment Accounts will be as follows:
| Balance in Account | Rate of Interest |
| up to £499.99 | 5.0% per annum |
| £500 to £2,499.99 | 5.25% per annum |
| £2,500 to £4,999.99 | 5.5% per annum |
| £5,000 to £9,999.99 | 5.75% per annum |
| £10,000 to £24,999.99 | 6.0% per annum |
| £25,000 to £49,999.99 | 6.25% per annum |
| £50,000 and above | 6.75% per annum |
National Savings Treasurer’s Accounts—Notice of New Interest Rates
On and from 30th October 1998 the variable gross rates of interest payable on Treasurer’s Accounts will be as follows:
| £10,000 to £24,999.99 | 6.0% per annum |
| £25,000 to £99,999.99 | 6.25% per annum |
| £100,000 and above | 6.75% per annum |