§ Mr. Cant
asked the Chancellor of the Exchequer what is the estimated saving to the Treasury, in interest payments for the period 1974–75, assuming the current level of interest rates and discounting any income tax lost through National Saving Certificates, of (a) National Savings Certificates, (b) Premium Bonds, (c) the National Savings Bank and (d) British Savings Bonds.
§ Mr. Robert Sheldon
The question of "saving" does not arise since the existing outstanding balances in national savings cover a wide range of investments taken out at different times and at different rates of interest and offering a wide variety of other facilities—for example, high liquidity, tax concessions, etc. However, on an arithmetical basis the differences between the amounts of interest on the balances outstanding in national savings certificates, premium savings bonds, the National Savings Bank and British Savings Bonds—including those on the trustee savings banks' part of the National Savings Register—on 31st March 1974 if invested at a current rate of, say, 10.5 per cent. (taxable) for one year, and one year's interest on the same balances at the current rates of interest payable on those securities and bank accounts, taking no account of the value of tax concessions linked with these rates, are as follows:
£ million National Savings Certificates 159.57 Premium Savings Bonds 50.99 National Savings Bank 107.96 British Savings Bonds 26.62
§ Mr. Robert Sheldon
The estimated amounts of principal still outstanding in the 8th, 9th, 10th, 11th and 12th and decimal issues of national savings certificates as at 30th June 1974 and the average compound tax-free yields on these issues over the period of the extension terms currently applicable to those certificates bought immediately the issues came on sale are as follows:
Issue Amount £m. Current Yield Per cent. 8th 18.7 4.86 9th 61.02 4.55 10th 164.89 6.95 11th 85.64 4.20 12th 457.14 4.66 Decimal 1,103.26 6.96
It should be noted that holders of earlier issues may encash their certificates and reinvest in the 'current (14th) issues, the tax free yield of which, over 4 years, is 7.59 per cent.