National Savings & Investments Index Linked Savings Certificates are back!

You may have heard that National Savings & Investments (NS&I) has issued index-linked savings certificates are back on general sale.

NS&I withdrew the investments from the market after sales volumes of the products exceeded expectation back in July 2010.

But it announced in March that after being handed a £2 billion net financing target for 2011/12 in the Budget, it was able to reintroduce them into the market.

You may have heard that National Savings & Investments (NS&I) has issued index-linked savings certificates are back on general sale.

NS&I withdrew the investments from the market after sales volumes of the products exceeded expectation back in July 2010.

But it announced in March that after being handed a £2 billion net financing target for 2011/12 in the Budget, it was able to reintroduce them into the market.

It has issued both index-linked and fixed interest savings certificates, which will be available to savers over a five-year term and are tax free.

The index-linked savings certificates will link to the retail prices index and offer an additional 0.50% fixed interest payment. Fixed interest savings certificates will pay 2.25% AER. The upper investment limit for both has been set at £15,000 per issue.

NS&I chief executive Jane Platt said she intended for the investments to be on sale for 'a sustained period of time'.

'With this in mind we are offering a five-year term, only available direct from NS&I. We understand fully that we will see very high demand for index-linked savings certificates.'

High demand for index-linked savings certificates had previously threatened NS&I's ability to operate within its net financing range.

It’s good to see these investments back on the market, and RPI linked, but it’s a shame that they are only offering the 5 year options this time, makes a good opportunity much less attractive.

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