National Savings Capital Bonds And Income Bonds

National Savings Capital Bonds

Where from? National Savings Bank & Capital Bond Office, Glasgow G58 1SB (forms available through post offices)

How they work You invest a lump sum for five years. The amount of your capital can't fall and earns a return which is fixed at the time you invest and which is highest if you hold the bond for the full five years. The return is poor if you withdraw your money early, and three months' notice of withdrawal is required.

Minimum investment £400. Maximum investment None.

Tax Return is taxable as income but paid without any tax having been deducted.

Good for Depending on interest rate at the time you invest, non-taxpayers who can tie up their money for five years - could be a good gift from a grandparent, say, to a child.

Bad for Anyone who can't tie up their money for five years

National Savings Income Bonds

Where from? National Savings Bonds & Stock Office, Blackpool FY3 9YP (forms available through post offices)

How they work You invest a lump sum. The value of your capital can't fall and earns interest which is paid to you monthly. Withdrawals require three months' notice and must be in mulTIP - les of £4,000. If you want your money back within the first year, your rate of interest is halved. You must keep a minimum balance of £4,000 in the bond.

Minimum investment £4,000 and multiples of £4,000 after that.


For more information about Investments And Tax

Regular Monthly Savings Accounts

Where from? Banks, building societies, Yearly Plan from the National Savings Certificate and SAYE Office, Yearly Plan Section, Durham DH99 INS (forms available through post offices)

How they work With most bank and building society schemes, you agree to save a regular monthly amount for at least a year (can be longer). The amount of your capital can't fall and earns interest - the rate can vary. You may be able to make one or two withdrawals a year, but notice - three months, say - is normally required.

Building societies also offer special SAYE schemes; you save a regular monthly... see: Regular Monthly Savings Accounts


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