NS&I Increases Interest Rate On Its Income Bonds
on: May 26, 2009, 7:35 am
Author: National Savings
Savings and Investments (NS&I) has announced that it has increased
the interest rates on its Income Bonds by 1%. The revised interest
rates came into effect from 20 May 2009 for Income Bond customers.
Income Bonds are intended to provide investors with a100%
secure monthly income at a competitive variable interest rate.
This no risk guarantee to the investment capital is possible because
National Savings and Investments is backed by HM Treasury. Income
Bonds can be cashed in at any time with no notice and no penalty
and income can be paid directly into a bank or building society
account or into a NS&I Investment Account or Easy Access Savings
combination of complete security and the increased interest
rates are expected to make NS&I
Income Bonds especially attractive in the current economic
constantly reviews savings products offered by other providers
and has made this decision to take into account the rates available
on other types of products which might be considered by Income
Bond customers. NS&I continues to follow a pricing strategy
designed to balance the interests of its savers, the taxpayer
and the stability of the financial services market.
interest rates on NS&I's other savings products, including
NS&I's Guaranteed Income Bonds, will remain unchanged.
brings the new Income Bonds variable gross rates* to 1.7% p.a.
(1.71% AER**) for savings of £500 - £24,999 and 2%
p.a. (2.02% AER) for savings of £25,000+.
Notes to editors
*Gross means the taxable rate of interest without the deduction
of UK Income Tax
**AER stands for Annual Equivalent Rate and enables the comparison
of interest rates from different financial institutions and across
different products on a like-for-like basis. It shows what the
notional annual rate would be if interest was compounded each
time it was credited or paid out. Where interest is credited once
a year the rate quoted and the AER will be the same
National Savings and Investments is one of the largest savings
organisations in the UK, offering a range of savings and investments
to almost 27 million customers. NS&I is best known for Premium
Bonds, but also offers a range of savings accounts including easy
access savings accounts, savings bonds, investment
accounts, and children's bonus bonds. All products offer 100%
capital security, because NS&I is backed by HM Treasury.
information and digital images are available from the NS&I
media team. An ISDN line is available for interviews.
National Savings and Investments
375 Kensington High Street
020 7348 93449