www.InvestmentGuide.co.uk
www.InvestmentGuide.co.ukNATIONAL SAVINGS
An investment which pays out monthly interest. No notice or penalty for withdrawals.
Who can invest Anyone.
How worthwhile Good value at current interest rates. Compare with Bank and Building Society Term Account. Compare with National Savings Fixed Rate Savings Bonds paying interest monthly.
Minimum £500. Larger purchases and additions must be in multiples of £500.
Maximum £1,000,000 for individual or joint accounts.
Suitable Lump sums.
Money back In a few days direct to a bank or building society account or by cheque. Fill out the form on the back of the certificate and send it to National Savings by post.
Interest Variable. Changes announced 6 weeks in advance. A higher rate is paid on holdings of £25,000 or more. For current the current rates click here.
Interest paid Monthly on the 5th direct to a bank, building society or National Savings Investment Account. The first payment is made on the next interest date after you have held the bond 6 weeks and includes all interest from the date of purchase.
Tax Not deducted. Taxpayers are liable to pay income tax on the interest which should be declared on a tax return. Basic taxpayers pay 20%. Higher rate payers pay 40%.
Fees to pay None.
Passbook Certificate issued.
Children Unsuitable. Consider National Savings Capital Bond or National Savings Investment Account instead. Income bonds are suitable for investment by the trustees of a formally constituted trust with children as the beneficiaries. Maximum 2 beneficiaries for each trust.
Risk None.
How to investOn-line. At post offices. By phone. By post.
Where from Get an application form on-line (including special trustee forms) or phone 0845 964 5000. Also from Post Offices for ordinary forms.
Last updated 28
October 2007.