Savings & Investment

Fixed Rate
You can choose from a whole range of fixed-rate products:

Type of account Minimum investment Access to your money Interest Other points Fixed rate savings bond £500 Lose 90 days' interest if cash-in early Fixed. Can be paid out as monthly income Choice of term: 1, 3 or 5 years  Fixed interest savings certificate £100 Within 7 working days. Interest reduced if in before full term Tax-free fixed Choice of tem: 2 or 5 years Index-linked savings certificate £100 Within 7 working days. Interest reduced ifcash in before full term Tax-free. Fixed rate plus amount equal to inflation Choice of term: 2 or 5 years Pensioners bonds £500 60 days' notice & lose 60 days' interest, or no notice & lose 90 days' interest Fixed. Paid out as monthly income Choice of term: 1, 2 or 5 years, only for people aged 60+ Capital bonds £100 Within 7 working days, interest reduced if cash in before 5 years Fixed 5-year term Children's bonus bonds  £25 Within 7 working days, lower interest if cash-in before a 5-year anniversary Tax-free. Fixed Bought for children up to age 16

Income Earning
There are two products specifically designed to earn regular income.

Premium Bonds
You can buy Premium Bonds for a minimum investment of _100, or 100 bonds. The serial numbers of these bonds are entered into a lottery which pays out tax-free prizes. The bonds that don’t win have no accruing interest or any other form of income. Statistically, however, it is likely that the amount of money you would accumulate over time from prizes when you do win is comparable to an investment. The capital you spend on the bonds is saved and can be converted cash after a 7 day notice.

The prizes range from _50 to _1 million, and the odds of you winning the grand prize is 1 in 30,000 (as of June 2003). The amount of bonds in circulation affects the odds of winning any prize but so does the cash pot allotted to prize money, thus the net average return generally remains the same.

National Savings and Investments
National Savings and Investments are a group of products issued by the UK Government, and as such are generally viewed as ‘low-risk’ methods of investing. By putting money into these products, you are essentially loaning it to the Government; theoretically, NS&I products are therefore good for the economy of the country.

NS&I products cater to different types of markets. Whether you are more concerned with generating income, or on seeing growth, there is an investment suited for your goals. In general though, they are aimed to mid to long-term investors who want a low-risk way of earning money. All NS&I products are deposit-based, so you will always get back at least the same amount you put in initially.

For more information visit the National Savings And Investments website http://www.nationalsavings.co.uk

National Savings Accounts
NSAs come in three varieties, differentiated by how easy it is to get access to your money if you need it:

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