A new route for savers
National Savings and Investments certificates have gone back on sale.
The certificates offer savers, disappointed with the effects that inflation has had on money squirreled away with banks and building societies, an alternative to low interest accounts.
The bonds, which involve locking money away for five-year periods, mean that savers can invest up to £15,000 but at a rate that helps to safeguard against the corrosive impact of the stubbornly high cost of living.
The NS&I certificates provide a return of 5.8 per cent based on the current level of inflation.
The bonds haven’t been on sale since July of last year because they were in such demand.
However, the Chancellor’s decision in the last Budget to up the net financing target for NS&I by £2 billion has opened the way for a reintroduction of the certificates.
The Government said: “The policy is to encourage saving in the medium and long term. The Chancellor wants to reward savers and this move does that.”
According to financial information website, Moneynet, the new NS&I bonds outperform pretty much everything else in the savings market.
The bonds can be bought at the NS&I website or by calling 0500 500 000.