National Savings
National Savings products are Government backed, and are used by the government as a means of borrowing. Because they are Government backed, they must be seen as the most secure form of investment, and to make them more attractive, they offer certain tax concessions with upper limits on the amount which can be invested. National Savings products are available from Post Offices or on-line.
Products available (March 2008) include:-
National Savings Bank Accounts - Investment Accounts and Easy Access Savings Accounts are available.
Guaranteed Income Bonds - Regular risk free monthly income.
Guaranteed Growth Bonds - Provide a Guaranteed Lump Sum at the end of the term.
Fixed Interest National Savings Certificates - National Savings Certificates are savings contracts with tax free interest rates fixed for the length of the chosen term, so that you will know how much interest will be earned each year. If savings are withdrawn before the end of the first year they will not get any interest. If savings are withdrawn before the end of the chosen term they will earn a lower rate of return.
National Savings Index Linked Certificates - Offer a small return plus the rate of inflation each year as measured by the Retail Price Index, provided the Certificates are held for more than a year. The proceeds are totally tax-free.
National Savings Income Bonds - Pay income monthly at a variable rate of interest. The interest is taxable, but paid without deduction of tax.
Children’s Bonus Bond – is a five year tax free investment for children. Designed mainly to let parents invest for their children in their child’s name.
Premium Bonds – A chance to win up to a million pounds, tax free. Minimum investment £100. Maximum £30,000.
Note - National Savings offer other products in addition to those listed.
Last updated on April 2, 2008