Index Linked Savings Bond

2nd Issue

(Withdrawn)

increase the purchasing power of your savings with inflation beating growth
fixed rate interest of 1.46% pa gross^ AER* to 30/11/2010 then
variable rpi linked indexation interest on maturity

4.60%^# Gross^ AER*

^# Illustrative rate using the percentage change in the Retail Price Index (RPI) between October 2005 and October 2010 as per Office of National Statistics, November 2010. Should there be no or minimal change to the RPI over the five years, a minimum guaranteed payment of 7.50% gross^ will be earned. The RPI can fall as well as rise and past performance is not a guide to future performance.

Rates effective from 16 November 2010

Key features

Indexation Interest paid at maturity increases the value of your savings by 50% more than inflation over the term, providing real growth in purchasing power
Guaranteed minimum maturity interest payment of 7.50% gross^
Limited issue – this product may be withdrawn at any time without prior notice
Invest from £1,000 to £1,000,000
5 year term
Indexation start date: 1 December 2010
Maturity date: 1 December 2015
No withdrawals allowed prior to maturity.

^ The gross rate is the interest payable before any income tax is deducted.

*aer stands for Annual Equivalent Rate and illustrates what the annual rate would be if interest was compounded.