5 Value added will be enhanced for the Government when wholesale interest rates are rising as the retail sector attempts to maximise margins by lagging behind changes in wholesale rates. Retail savings, however, will be less attractive if retail institutions are reducing savings interest rates in line with wholesale interest rates. As a result, the value added by National Savings will vary substantially with wholesale interest rate changes over an economic cycle. Accurate pricing is therefore critical to ensuring that money is raised throughout a cycle at competitive interest rates with gilts. Accurate pricing is also critical if National Savings is to compete effectively with other institutions and maintain a loyal customer base.