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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. 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. This product is not currently on sale.
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.
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 the term.
Interest paid Accumulated.
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. Special application forms needed.
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. By phone. By post.
Where from National Savings.
Other National
Savings
Bank and Building
Society accounts
Last updated 4
January 2012