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
|
|
Direct Saver
|
1.75%
|
31/08/2010
|
Instant
|
£1
|
-
|
1.40%
|
1.05%
|
|
Direct ISA
|
2.50%
|
31/08/2010
|
Instant
|
£100
|
£5,100
|
3.13%
|
4.17%
|
|
Income Bonds
|
1.46%
|
31/08/2010
|
Instant
|
£1
|
£24,999
|
1.17%
|
0.88%
|
|
Income Bonds
|
1.76%
|
31/08/2010
|
Instant
|
£25,000
|
-
|
1.41%
|
1.06%
|
Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority