National Savings & Investments has relaunched its popular inflation-linked savings certificates after they were withdrawn last year due to huge demand.
The tax-free certificates are linked to the Retail Price Index, which was 5.3 per cent in March, plus a fixed rate of 0.5 per cent and are only available over a five-year term.
NS&I says the Budget announcement confirming its net financing target for 2011/12 of £2bn, within a £2bn range each way, has given it the ability to reintroduce the certificates after they were withdrawn in July 2010 due to high demand. The upper limit for the certificates remains £15,000 and they are only available direct from NS&I.
NS&I chief executive Jane Platt says: “Our aim is to keep Savings Certificates on sale for a sustained period of time and to enable as many savers as possible who wish to invest to do so. With this in mind we will be 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.”