HC Deb 22 July 1982 vol 28 cc293-4W
Sir David Price

asked the Chancellor of the Exchequer what progress the Department for National Savings has made in the first quarter of the current financial year towards meeting the target of £3 billion announced in the Budget for 1982–83.

Mr. Bruce-Gardyne

During the first quarter of 1982–83 total net inflows into the Department for National Savings were £350 million, including accrued interest. To achieve the target of £3 billion for the financial year as a whole and ensure that National Savings makes a proper contribution to total funding, it will be necessary to raise the rate of inflow and I have approved the following measures:

  1. i. an Income Bond with an initial interest rate of 13½ per cent. will be on sale from 2 August through the Press, 294 and through Post Offices a week later. Interest will be paid out each month and so the Bond will fill a gap in the National Savings product range;
  2. ii. the holding limit on the 2nd Index-linked National Savings Certificate will be doubled to £10,000 from 26 July;

They are described in more detail in a press notice being issued today by the DNS.