§ Mr. Beaumont-Darkasked the Chancellor of the Exchequer, in the light of recent national savings results, what proposals he has to improve the level of return on national savings.
§ Mr. MooreYes. I have decided to make the following changes.
A new 26th issue of national savings certificate which will offer a rate of return of 8.25 per cent. free of tax over a five year period will come on sale on 15 August 1983; the 25th issue will be withdrawn on 13 August 1983.
The rate of interest paid on the national savings investment account will be increased to 11 per cent. on 1 August 1983 and that for the national savings income bond to 11.5 per cent. from 4 September 1983.
I have also decided to extend for another 12 months the 2.4 per cent. supplement paid on index-linked national savings certificates and on the third issue index-linked SAYE contracts. These supplements will be available only if the investments are retained for a further year.
These measures are described in more detail in a press notice being issued today by the Department for National Savings.