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NSI Withdraws Savings Certificates

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Just four months after relaunching Index-linked Savings Certificates, the Government-backed savings institution National Savings & Investments (NS&I) has withdrawn its Savings Certificates from sale. The move was necessary in order to ensure that it meets its Net Financing target for 2011-2012 of £2 billion.

NS&I’s Savings Certificates come in two forms: Fixed Interest Savings Certificates, which pay a guaranteed rate of interest over the term of the investment, and Index-linked Savings Certificates, which pay a return equivalent to changes in the Retail Prices Index plus a small additional rate of interest. Up to £15,000 could be invested in each issue of Savings Certificates, and returns are tax-free.

The most recent issues of both types of Savings Certificates were withdrawn from general sale at close of business on 6 September.

NS&I also no longer offers bonds, except for the Children’s Bonus Bond (34th issue), which currently pays 2.5 per cent free of tax.


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