National Savings and Investments

INDEX-LINKED NATIONAL SAVINGS

MOVEMENT OF THE UNITED KINGDOM GENERAL INDEX OF RETAIL PRICES

For the purposes of revaluing on repayment Index-linked National Savings Certificates (Retirement Issue, 2nd, 3rd, 4th, 5th, 6th, 7th, 8th and 9th Index-linked Issues) and contributions under Save as You Earn savings contracts (Third Issue), the Index figure issued by the Office for National Statistics in the month of November 2006 for the month of October 2006, and applicable to the month of December 2006, is 200.4. This figure is based on the revised reference base of 100 adopted in January 1987. In accordance with the relevant prospectuses a notional Index figure of 790.6 has been calculated and will apply to Index-linked Savings Certificates purchased in March 1987 or earlier and SAYE contributions which were due for payment and made in February 1987 or earlier.

2-YEAR FIXED INTEREST NATIONAL SAVINGS CERTIFICATES—NEW ISSUE

34th Issue 2-year Fixed Interest Savings Certificates went on sale on 26 October 2006. A Certificate will grow in value at a guaranteed rate each year as follows: Year 1 3.25% Year 2 3.46% If a Certificate is held for two years, these rates will give a tax-free and guaranteed return equal to 3.35% pa compound.

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

14th Issue 3-year Index-linked Interest Savings Certificates went on sale on 26 October 2006. 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	+0.90% of Purchase price	=1st Anniversary value
1st Anniversary Value	+Index-linking for year 2	+1.10% of 1st Anniversary Value	=2nd Anniversary Value
2nd Anniversary Value	+Index-linking for year 3	+1.46% 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 1.15% 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 26 October 2006 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 of bond	Gross Annual Rates
Annual interest option	Monthly interest option
1-year issue 34	£500 to £19,999.00	4.50%	4.40%
£20,000 to £49,999.99	4.65%	4.55%
£50,000 and above	4.85%	4.75%
3-year issue 28	£500 to £19,999.00	4.35%	4.25%
£20,000 to £49,999.99	4.50%	4.40%
£50,000 and above	4.70%	4.60%

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

Series 32 1-year Pensioners Guaranteed income Bonds went on sale on 26 October 2006. The interest rate, fixed and guaranteed for the first year a Bond is held, is 4.65% pa gross. The interest is paid gross and is taxable.

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

Series 38 2-year Pensioners Guaranteed income Bonds went on sale on 26 October 2006. The interest rate, fixed and guaranteed for the first two years a Bond is held, is 4.60% pa gross. The interest is paid gross and is taxable. Issued by National Savings and Investments on behalf of the Treasury