Budget 2011: NS&I inflation-linked savings certificates to be reintroduced

23 March 2011

Announced alongside the Budget, the index-linked certificates will pay 1% over the retail prices index (RPI).

The group announced: "The positive net financing target will allow NS&I to plan the re-introduction of savings certificates."

They closed last summer for the first time since their launch 35 years ago. Since then, RPI inflation has grown to 5.5%.

Although they will definitely return to the market this year, NS&I cannot confirm when exactly they will be reintroduced.

Patrick Connolly, chartered financial planner from AWD Chase de Vere, comments that their relaunch is 'fantastic news for savers'.


'Many savers currently face the dilemma of losing money in real terms on their cash savings or putting their capital at risk as they try and generate better returns. These products will provide the only way that savers could be sure of getting returns greater than inflation while still protecting their capital.


When they are reintroduced, Connolly thinks 'there will be even more demand': 'This means that either savers would need to be restricted to a small allocation or the products would sell out very quickly again. When index-linked certificates are relaunched our advice to many savers will be to get in quickly, because they may not be around for long,' he adds.


Ros Altmann, director general of Saga, recently put pressure on the government to relaunch these savings certificates, slamming the decision to remove them as "one of the biggest disasters" in the past couple of years.

She today labelled their reintroduction as "great news".

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