NS&I withdraw index-linked and fixed interest certificates

We keenly awaited the return of NS&I indexed linked certificates and quickly alerted clients to their relaunch in May this year, suggesting where possible they consider the maximum investment of £15,000 per person.

Being the only savings vehicle in the UK able to guarantee a tax-free return greater than the rate of inflation - with the capital being 100% backed by the government - it is no surprise that they have been hugely popular with over 520,000 people investing to date.

Now just four months later, NS&I confirmed this week that both fixed interest and index-linked certificates are no longer available for new investors. In fact, it is likely that the certificates will not return until at least Q2 next year and the expectation is that they may not be as attractive as this year’s issue, which offered 0.5% above RPI for a term of five years.

For existing holders, on maturity, it will be possible to keep the investment for another term of the same length. Or another option will be to reinvest into any of the other savings certificate terms and issues on offer at that time.
 

Source: http://feeds.lexblog.com/~r/MercerHole/TaxPlusBlog/~3/N5B7CvxZXB0/

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