www.InvestmentGuide.co.uk
www.InvestmentGuide.co.ukNATIONAL SAVINGS
An investment which pays out monthly interest at a fixed interest rate for 1, 2 or 5 years. You can get your money back early but there is a 60 day or 90 day interest penalty.
Who can invest Anyone age 60 or over. For joint accounts you must both be over age 60. This product will be discontinued from 23 February 2008 and replaced by a new product called National Savings Guaranteed Income Bond.
How worthwhile Good value for small amounts only. The one year bond is best value. Compare with Bank and Building Society Term Account or Life Insurance Growth or Income Bond and with National Savings Fixed Rate Savings Bonds.
Minimum £500.
Maximum £1,000,000 for each series. Bonds may also be held in trust so doubling the maximum investment. The beneficiaries must all be age 60 or over but the trustees need not be.
Suitable Lump sums.
Money back At 60 days notice and 60 days loss of interest if before the end of the term. You can get money back without notice but then there is 90 days loss of interest. Your money is repaid without penalty at the end of the 1 to 5 year term or on death. Fill in the form on the back of the bond and send it off. If you only want to cash part, you must cash at least £500 and at least £500 must remain in each Series of the Bond.
Interest Fixed for the full term at the rate quoted at the outset. For the rates currently paid and on recent previous issues click here.
Interest paid Monthly on the 19th 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 Not allowed.
Risk None.
How to invest Ask for an application form. You can send the form by post to National Savings or pay the money over the counter at a Post Office or use a debit card to pay.
Where from National Savings.
Last updated 11
February 2008.