§ Mr. Arbuthnot
asked the Chancellor of the Exchequer whether he will make a statement about National Savings.
§ Mr. R. A. Butler
Yes. The current issue of 3 per cent. Defence Bonds will be withdrawn at the close of business on Saturday, 30th August, and a new 3½ per cent. Defence Bond will be on sale from 1st September, 1952. In addition to the higher rate of interest, the new bond will differ in several respects from its predecessors. It will attract a bonus of £1 after five years, and this will increase to £3 after 10 years. The maximum holding of the bond will be £1,000 exclusive of holdings of earlier issues.
Other new features are that the normal notice of encashment will be reduced to three months after five years and that no deduction will be made where immediate encashment of bonds of a deceased holder is required for the purpose of winding up his estate. Provision is also being made to enable the Treasury to extend the life of the bonds in cases where no application for repayment is received.202W
Holders of 3 per cent. Defence Bonds of the third issue purchased between 1st September, 1942, and 31st December, 1942, and therefore maturing later this year will be invited to convert their holdings into 3½ per cent. Defence Bonds similar to those of the new issue. Bonds acquired by conversion may be held in addition to the limit of £1,000.
Further particulars about the new bond and the conversion offer are being released to the Press today and full details of the conversion offer will shortly be posted to holders of 3 per cent. Defence Bonds to which the offer applies.