Inflation-beating savings plan opens

Nicky Burridge,Pa
Thursday 12 May 2011 10:11 BST
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National Savings and Investments today relaunched its popular Inflation Beating Savings product 10 months after it was forced to withdraw it due to "overwhelming demand".

The move is welcome news for consumers who are struggling to stop the value of their savings from being eroded by inflation, as the Government-backed group's Index-linked Savings Certificate pays a return that is linked to the Retail Prices Index.

But unlike previous issues of the product, NS&I will be offering the certificate over a five-year term only, rather than a three or five-year one, in a bid to keep it on sale for as long as possible.

Savers can invest up to £15,000 into one of the certificates, and will receive a tax-free return each year based on RPI inflation and fixed interest of 0.5%.

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