National Savings and Investments recently announced changes to their Index Linked Savings Certificate offerings. Until now, investors were able to purchase 2-year and 5-year Index Linked Certificates. This has now changed to 3-year and 5-year.
National Savings has assured current 2-year certificate holders that they will be offered a further 2-year certificate upon maturity at the prevailing rate. The minimum investment into these new certificates is £100 and the maximum is £10,000 per issue. Investors receive no interest if they cash in their certificates within the first year but access to capital can be made within 7 days.
Our View
National Savings do have a place for certain types of investor. However, many find they can obtain more competitive rates of interest elsewhere. The benefit of both the Fixed Interest and Index Linked Savings Certificates is that the returns are free of tax and the Government backs the investments.
The index-linked certificates offer index linking (to match the rate of inflation) plus a percentage on top. If you are thinking of investing, compare the returns to the net return you could receive on deposit and take advice if necessary.
Learn more about National Savings in the Savings Adviser.com.