§ First, there is the question of putting a new cutting edge on the old tools. The National Savings Certificate is, by common consent, the leading small savings security. The current issue yields £3 0s. 11d. per cent. tax free, if held to maturity in ten years. I feel justified in offering the small saver a higher return, and a shorter period in which to earn it. There will, therefore, be a new issue, opening on 1st August, of a 15s. certificate rising to 20s. in seven years. The yield, if held to maturity, works out at £4 3s. 11d. per cent. tax free. The limit on holdings of the new issue will be 600 units.
877§ I have said that the new issue will open on 1st August. Till then, the current issue will remain on sale, and I would urge everyone who can not to miss the chance of increasing his holding of the current issue before it closes. For the benefit of those who hold the maximum, I am raising the limit on holdings of the current issue from 1,200 units to 1,400 units.
§ Next, the Defence Bond. Here again, I feel justified in offering the saver a higher return. On 1st May, the current 4 per cent. issue will be closed, and a new issue will open yielding interest at 4½ per cent. and encashable at par on six months' notice, but with a premium of £2 per cent. if the bond is held for five years, or £5 per cent. if it is held for its full currency of ten years.