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www.InvestmentGuide.co.ukOther National
Savings
Bank and Building
Society accounts
NATIONAL SAVINGS
A lump sum investment which accumulates interest at a fixed rate and for a fixed term both determined at the outset of 1, 3 or 5 years (earlier issues also had 6 month, 18 month and 2 year terms). At the end of the term, you can withdraw or leave your money for another fixed period at the then current fixed rate. There is a 90 day interest penalty if you cash early.
Who can invest Anyone over age 16. Joint accounts for 2 people are allowed.
How worthwhile Compare with Bank or Building Society Term Account which generally pays better interest. Higher rate taxpayers might consider instead Life Insurance Growth or Income Bond.
Minimum £500. Higher interest is paid at £20,000+ and at £50,000+
Maximum £1,000,000.
Suitable Lump sums.
Money back At the end of the term. A few days if you want it back early but there is a 90 day interest penalty.
Interest Fixed for for the term. Currently the same rate of interest is paid for all the terms. Higher interest is paid at £20,000+ and at £50,000+. A lower nominal rate (0.1% less) is paid if the monthly interest option is chosen. Click here for the latest rate.
Interest paid Yearly or monthly (at a slightly lower rate).
Tax Basic rate tax is deducted from the interest. Non-taxpayers and 20% tax-payers can reclaim tax from the Inland Revenue. Higher rate taxpayers pay 20% extra.
Fees to pay None but see Money back.
Passbook Statement sent with each transaction or yearly.
Children Over age 16 only or held in trust by up to 2 trustees for up to 2 beneficiaries of any age.
Risk None. Full value of original investment returned on withdrawal. As National Savings & Investments is a Government department, this is one of the safest homes for your money if you have large amounts to invest. In effect 100% of your investment is guaranteed by the Government.
How to investOn-line. At post offices. By phone. By post.
Where from You can apply on-line or phone 0845 964 5000 and if you want a trustee account. Also from Post Offices for ordinary forms.
Other National
Savings
Bank and Building
Society accounts
Last updated 11
February 2008.