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Savers benefit from new NS&I certificates
Investors looking for the potentially higher returns of index-linked products have been given a boost with the news that National Savings and Investments (NS&I) is set to resume sales of its saving certificates later this year.
Its Inflation-linked Savings Certificates were withdrawn from sale last year amid exceptional consumer demand. As a result, it is expected that hundreds of thousands of savers will take up the new certificates when they become available.
As the institution is backed by the government, it has to operate within a Net Financing target set by the Treasury, which ensures that it is unable to dominate the market. However, banks and building societies fear the move will mean NS&I absorbs the entire growth in the savings market this year.
At the time of the announcement that the certificates were to be reintroduced, in March, the Financial Times reported that NS&I wanted to be able to keep the certificates on sale once they became available, rather than having to withdraw them again because of high demand.
According to the Citywire Money website, NS&I has said that if demand does prove to be very strong, it could adjust the terms or availability of its other savings products.
NS&I says there are no issues of certificates on general sale at the moment but is encouraging potential investors to register for email updates via its website at www.nsandi.com/ to receive an alert as soon as issues go on sale.
