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RAOC Gazette - page 34

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Full title RAOC Gazette
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Publication date 1981
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Transcription T H E A S S O C I A T I O N O F SERVICE NEWSPAPERS ADVERTISEMENT PAGES,
PO B O X 4. F A R N B O R O U G H , H A M P S H I R E , G U U 7Lft, TEL 0251 51 SOT I
can save
to £50 month
Inflation
lax-free!
ft
Here is a further opportunity for any
serviceman who wants to protect his
regular savings from inflation. With the
S.A.Y.E, scheme, you can invest anything
from £4 to a new limit of £50 a month,
with all the benefits of index-linking, and
a return that's free of tax.
If you're already using S AYE. and you
want to increase your investment you can do
so by opening an additional contract, as long
as your monthly total does not exceed £50.
How the inflation-proofing works
S. AYE, is a scheme that provides for
60 monthly contributions over five years.
Contributions are linked to the Retail Prices
Index GRPD - a measure of the cost of living
- thus inflation-proofing your savings.
At the end of five years, each monthly
contribution is revalued in line with any
change in the KPI. Then there are two things
you can do: you can draw the whole lot
out; or you can leave your savings in the
scheme for two more years, without making
any more contributions. If you leave your
savings in, the index-linking is extended to
the end of the seventh year, and you then get
a bonus equivalent to two months' contri-
butions. The index-linking is guaranteed,
whateverhappens to interestrates elsewhere.
How to get your money out
Although your contract is for five
years, it can be terminated earlier-but you
lose your index-linking, If you have been
in the scheme for less than a year, you will
get only your contributio ns back. Over that
(but under five years), 6% a year tax-free
interest will be added.
Tax-free
All repayments, including index-
linked increases, are free of UK income tax
and capital gains tax,
How to start
There are four ways to pay; by bank
standing order, cash over the post office
counters, National Girobank standing
order or a payroll deduction scheme. Ask
at the Pay Office for details or get a leaflet
from a post office.
National Savings
Printed in Great Britain
SUPPLEMENT No. 1 — PAGE THREE
Book number R0250a