In the economic cycle1988/89 to 1995/96 National Savings added value of £1,600 million

7  As part of the strategic review, Corporate Value Associates calculated that National Savings added value of £1,600 million during the period 1988/89 to 1995/96 (Figure 20), after taking account of running costs and tax foregone on some savings products. The profile of value created demonstrates the characteristics of retail funding described earlier. Value is created mainly in periods of rising interest rates: 1988 to 1990 was a significant period of value creation. In contrast, value was reduced in 1991/92 to 1993/94, a period of falling interest rates. Variable rate products created some £500 million of value and fixed rate products £1,100 million over the cycle.