5 April 2011
In the 2011 Budget it was announced that National Savings and Investments (NS&I) will be reintroducing index-linked savings certificates (ILSCs). These deposit based investments are guaranteed by the Government and offer a tax free, index-linked return if held for at least one year.
The certificates were withdrawn in July 2010 but will be available again in the 2011/12 tax year. NS&I’s last issue of ILSCs paid 1% above the retail price index (RPI), however, the terms of the new issue have yet to be confirmed and may not be as attractive as previously. Currently, NS&I is only promising that the bonds will at least match the RPI rate but, with the rate currently running at 5.5%*, secure, index-linked, tax free investments of this sort are very attractive.
Be warned, when the ILSCs are relaunched there is likely to be intense demand and they may only be available for a relatively short period. To ensure you do not miss out on this opportunity you can register to receive email updates from NS&I, ensuring that you receive notification of their launch, at www.nsandi.com/savings-index-linked-savings-certificates
For further information or to discuss your investment options, please contact UHY Financial Planning or your usual UHY contact.
* According to the Office for National Statistics
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