§ Mr. Bowdenasked the Chancellor of the Exchequer what information is given to prospective purchasers of second index-linked issue bonds concerning the need for eight days' notice before encashment; and how this notice may affect the rate of interest paid when bonds are relinquished.
§ Mr. Bruce-GardyneIn a note to the current 2nd index-linked issue prospectus, prospective purchasers are told that
although the Certificate Office will normally put the repayment in the post within 8 clear working days of receiving an application, this cannot be guaranteed and it is advisable to apply as early as possible".The repayment application form advises holders wishing to encash to
apply at least 8 CLEAR WORKING DAYS before you require repayment".If the certificate has been held for at least one year the purchase price is revalued in line with changes in the monthly retail prices index between the date of purchase and the date of repayment. The working period between the application and the repayment will affect the return on the certificate only if the repayment takes place in the following month. This would normally, though not always, increase the repayment value because a higher retail prices index would usually apply in the later month.