National Savings and Investments is to re-introduce index-linked savings certificates from April.
Last June, NS&I was criticised for withdrawing index-linked savings certificates, one of the few easily available inflation proof investments, saying it had reached its annual issuance limit.
But today’s Budget included confirmation that NS&I’s target for new fund raising for 2011/12 would be £2bn which opens the way for NS&I to issue index-linked savings certificates to new customers, as well as to savers with maturing savings.
A statement from NS&I said: “As confirmed in the Debt Reserves Management report, issued today, NS&I’s target for net financing for 2011-12 is £2bn. This positive net financing target will allow NS&I to plan the re-introduction of savings certificates for general sale in due course.
“Subject to market conditions, NS&I expect to be bringing savings certificates back on general sale in 2011/12.”
NS&I also confirmed that the new issue of index-linked savings certificates would continue to be indexed against RPI rather than CPI.