§ Mr. McCrindleTo ask the Chancellor of the Exchequer (1) how many representations he has received concerning the failure to maintain a competitive interest rate on national savings income bonds; and if he will make a statement;
(2) if he will improve the interest rate available on national savings income bonds; and if he will make a statement.
§ Mr. LilleyI received a number of representations during the summer about the rate of interest on income bonds which, together with the terms and conditions of all national savings products, the Government keep under constant review. The rate, which is paid gross of income tax, was increased from 9 per cent. to 10.75 per cent. on 9 October.
§ Mr. McCrindleTo ask the Chancellor of the Exchequer if he has any plans to introduce a new national savings instrument to attract those with sums of over £5,000 to invest.
§ Mr. LilleyYes. A new national savings instrument is to be launched on 4 January. It will offer a guaranteed return, with interest rates set to increase each year of its five-year life. Interest will be paid gross, but subject to tax. The minimum investment will be £100; there will be no upper limit. The interest rates and other details will be announced shortly before it goes on sale.