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Northampton Financial Adviser reviews latest NS&I Index Linked Certificates

Posted on May 17, 2011 by admin

Newsflash – New NS&I Index Linked Savings Certificates – Should you get them while you can?

The government has recently launched its latest issues of the National Savings and Investments (NS&I) Fixed and Index Linked Savings certificates. Of the two the Index- Linked Certificate is likely to generate the most interest as, whilst the offer is not as generous as previous offers, it still provides 0.5% above inflation (RPI) over a 5 year term. With RPI currently at 5.3% (April) the initial equivalent gross return for basic rate tax payers would be 7.25%. For those paying the higher rates of tax the equivalent gross return is 9.6% & 11.6% respectively. The maximum investment per investor though remains at just £15,000.

Whilst inflation is expected to fall back over the next year or so, it has proved to be stubborn and the Bank of England has revised its inflation expectations a number of times over the last year and many commentators are becoming concerned that inflation is gaining a foothold.

This offer is therefore likely to prove popular, providing an element of protection in these uncertain times.

Certificates can be purchased over the phone, online or by telephone. If you would like to discuss their suitability or otherwise as part of your investment planning please either contact your usual Cave’s adviser or  contact Gregg Taffs via email at gtaffs@caves.co.uk or phone 01604 621421.

The government has set a target of £2 Billion which given past experience may be met within weeks rather than months.

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