NS&I Withdraws Savings Certificates

Just four months after relaunching Index-linked Savings Certificates, the Government-backed savings institution National Savings & Investments (NS&I) has withdrawn its Savings Certificates from sale. The move was necessary in order to ensure that it meets its Net Financing target for 2011-2012 of £2 billion.

NS&I’s Savings Certificates come in two forms: Fixed Interest Savings Certificates, which pay a guaranteed rate of interest over the term of the investment, and Index-linked Savings Certificates, which pay a return equivalent to changes in the Retail Prices Index plus a small additional rate of interest. Up to £15,000 could be invested in each issue of Savings Certificates, and returns are tax-free.

The most recent issues of both types of Savings Certificates were withdrawn from general sale at close of business on 6 September.

NS&I also no longer offers bonds, except for the Children’s Bonus Bond (34th issue), which currently pays 2.5 per cent free of tax.

Click here for guidance on what kinds of income are taxable.

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