Press Release

NS&I TO LAUNCH BRAND NEW DIRECT ISA

01 April 2006

• Online and phone ISA with competitive interest rate
• Online: www.nsandi.com
• Phone: 0845 964 5000

National Savings and Investments (NS&I) is to launch a Direct ISA – available from 6 April 2006, online and by telephone – which will pay a competitive interest rate and is guaranteed to stay above the Bank of England base rate for at least the next two years.

Direct ISA customers will be able to invest up to £3,000 each tax year and manage their account online 24 hours a day and by phone between 7 a.m. and midnight, seven days a week.

And the Direct ISA comes with the 100% capital guarantee which NS&I can offer because all of its savings and investments are backed by HM Treasury.

Tax advantages

The new Direct ISA is an addition to NS&I’s range of tax-free products. As well as a Cash mini ISA – currently paying 4.20% per annum – NS&I also offers Premium Bonds, Inflation-Beating Savings, Fixed Interest Savings Certificates and Children’s Bonus Bonds. All interest earned on these savings is free of UK income tax.