New issues of inflation-beating savings from NS&I

NS&I has released two new issues of Inflation-Beating Savings, also known as Index-linked Savings Certificates, giving savers the chance to invest up to £15,000 tax-free per issue. The Certificates are the only form of savings available in the retail market that offer a 100% safe, tax-free home, with a guaranteed inflation-beating return.

The value of Index-linked Savings Certificates moves in line with inflation as measured by the Retail Prices Index (RPI), and interest is added on each anniversary. The Certificates are designed to be held for the whole investment term to receive the full guaranteed compound interest, as the guaranteed rates of extra interest increase each year during the term. This means the returns outstrip any rise in RPI inflation and, as nothing is taken away in tax, the spending power of the investment is increased by the end of the term.

This is the first time that a continuous period of deflation has been experienced since NS&I's Index-linked Savings Certificates were launched in 1975. Interest and any positive index-linking are applied annually on each anniversary date. However, if index-linking is negative from one anniversary to the next, it is ignored and the extra interest is still added.

With the introduction of these new issues, the previous issues - which were available from June 2008 - have been removed from sale. People who already have an investment in a former issue of Inflation-Beating Savings are also eligible to invest in the new issues.

NS&I Inflation-Beating Savings key features

Savings grow ahead of inflation, as measured by the Retail Prices Index
Minimum investment of £100, maximum investment £15,000 per issue
All returns are tax-free
Interest and any index-linking added at the end of each year
Designed to be held for 3 or 5 year terms, no interest or index-linking paid if cashed in during the first year
Capital invested is 100% secure