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.