Saving Certificate rates cut

INTEREST rates have been cut on the new issues of Savings Certificates and Savings Bonds.

After the cuts, which come into effect today, savings certificates will offer a guaranteed return of 30 per cent after five and a half years. This is an average rate of return of 4.89 per cent a year.

The new savings bonds will offer 14 per cent tax free after three years, or 4.46 per cent a year.

There is a maximum investment of £60,000 in the new issue. The minimum investment on the certificates is £50 and £100 on the bonds.