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Sep 1, 2006
National Savings and Investments (NS&I) has released September 2006
cash values for its Index-linked Savings Certificates held for one year or
more. For working out these values in September, the company pegs the Retail
Price Index figure at 198.5 while the increase in the Index over the year is
3.3%. Because Index-linked Saving Certificates offer a tax-free return that
beats inflation, NS&I says these makes them attractive for basic as well as
higher rate taxpayers.
The charts below list to all certificates bought by the investor since
their first launch in 1975. They show the exact value of a £100 Certificate
including supplements, bonuses and extra interest. NS&I’s calculator and
tables can be accessed at http://www.nsandi.com/products/ilsc/calculator.jsp
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Investment terms and interest rate
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Equivalent gross rate for basic rate
taxpayers
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Equivalent gross rate for higher rate
taxpayers
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5-year (Issue
41)
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5.50%
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7.33%
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1.10% +
index-linking
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(RPI currently
3.3%)
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3-year (Issue
13)
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5.43%
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7.25%
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1.05% +
index-linking
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(RPI currently
3.3%)
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Note: these figures assume the RPI rises by 3.3% each
year for the next five years and current rates of tax
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