P227 CEEFAX 227 Tue 8 May 21:05/41 1/3 FOCUS: NEW SAVINGS PLAN The Govjtnmjnt is dismantling its now familiar regular savings scheme, the index-linKed 3rd Issue Save As You Earn contract. In its place, from July 2, comes a new scheme to bj known as the National Savings Yearly Plan. The return remains tax-free, and the principle of monthly contributions ovjt five years remains intact. The return, however, will no longer bj tied to the UPI, but will instead bj fixed ovjt the five-year term Books Page 228P227 CEEFAX 227 Tue 8 May 21:14/41 2/3 FOCUS: NEW SAVINGS PLAN The introduction of a fixed return apart, the NS Yearly Plan departs from its KAYE predecessor in two other important respects. First, the minimum and maximum monthly contributions jump from £4 and £50 to £20 and £100. Second, the minimum period of monthly contributions qualifying for the full return is reduced from five years to just one. This yearly plan may then bj repeated for one year at a time up to five. Books Page 228P227 CEEFAX 227 Tue 8 May 21:24/10 3/3 FOCUS: NEW SAVINGS PLAN The (fixed) rate of interest paid bz the new NS Yearly Plan has yet to bj announced. It is likely, however, to represent an improvement on the 5.2pc currently paid out by the index-linked KAYE scheme. (The latter was paying nearly 27pc when first introduced, back in 1975). Savers wanting to jump on the inflation bandwagon have until May 31 to join the KAYE scheme. Otherwise, they can always put their spare cash into Index-Linked NS Certificates, which remain on sale. Books Page 228