§ Mr. Freudasked the Chancellor of the Exchequer what are the costs of administering the premium savings bond schemes (a) in administration and (b) in promotion; and if he is satisfied that the current interest of 11.25 per cent. below minimum lending rate remains a satisfactory incentive to investors.
§ Mr. Lawson[pursuant to his reply, 24 January 1980, c. 370]: Administrative 382W costs of the premium savings bonds scheme for 1978–79 were £18.5 million. Promotion costs in that year totalled a further £494,000. The mean balance invested in premium savings bonds in 1978–79 was £1,343 million. With regard to the second part of the question, as with all national savings instruments, the terms of the premium savings bonds scheme are kept under constant review. However, the major incentive to investors in premium bonds is the prospect of a prize of up to £100,000; for those seeking an assured rate of interest a variety of other national savings instruments are available.