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Bestinvest

National Savings & Investments

National Savings & Investments (NS&I) is a type of Government borrowing and is therefore 100% backed by the Goverment regardless of the amount that you invest. NS&I offer a number of different products of which we have highlighted four types, each with different time scales. Several of NS&I’s products are tax free. We have grossed up these to give a post tax Gross Annual Equivalent Rate which allows for a direct comparison with other cash options.

Growth and Income Bonds are identical except that Income Bonds pay monthly interest. Therefore, for terms of over a year, the Annual Equivalent Rate for Income Bonds will be lower as investors will not earn interest on their interest.

Fixed Interest Saving and Index Linked Savings Certificates are tax free. Index Linked Savings are fixed to the Retail Price Index (RPI), not the Consumer Price Index (CPI).

Please visit the NS&I website for full information: http://www.nsandi.com/index.jsp

National Savings & Investments Gross Yield As of Term Min Deposit Max Deposit Net Lower Rate tax Net Higher Rate tax
RPI + 1 AER  
Fixed Interest Savings Certificates 47th Issue 1.25% 08/03/2010 2 yrs £100 £15,000 1.56% 2.08%
Fixed Interest Savings Certificates 96th Issue 2.25% 08/03/2010 5 yrs £100 £15,000 2.81% 3.75%
RPI + 1 AER  
Index Linked Certifcates Issue 18 RPI + 1% 08/03/2010 3 yrs £100 £15,000 1.25% 1.67%
Index Linked Certifcates Issue 45 RPI + 1% 08/03/2010 5 yrs £100 £15,000 1.25% 1.67%

Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority

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