Press Release

NATIONAL SAVINGS AND INVESTMENTS INFLATION-BEATING SAVINGS CASH VALUES IN NOVEMBER 2006

17 October 2006

RPI continues to increase - now at 3.6%

The range of Inflation-beating Savings currently offer equivalent returns of up to 7.83%

The link below provides the November 2006 cash values for Index-linked Savings Certificates held for one year or more. The charts refer to all certificates bought by investors since their first launch in 1975.

The charts show the exact value of a £100 Certificate including supplements, bonuses and extra interest.

The calculator and tables can be accessed at www.nsandi.com/products/ilsc/calculator.

Retail Prices Index

For working out these values in November, the Retail Price Index figure is 200.1. The increase in the Index over the year is 3.6%.

Inflation-beating savings rates of return

Because Index-linked Saving Certificates offer a tax-free2 return that beats inflation, it makes them particularly attractive for basic as well as higher rate taxpayers.

Investment terms and interest rate

Investment terms and interest rate	Equivalent gross rate for basic rate taxpayers	Equivalent gross rate for higher rate taxpayers
5-year (Issue 41) 1.10% + index-linking (RPI currently 3.6%)	5.88%	7.83%
3-year (Issue 13) 1.05% + index-linking (RPI currently 3.6%)	5.81%	7.75%

(These figures assume the RPI rises by 3.6% each year for the next five years and current rates of tax )