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Our range
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Index-linked Savings Certificates
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How they workWith our inflation-beating savings, you’ll have the peace of mind of knowing that the value of your savings will stay ahead of any change in RPI over the investment term. After you invest, their value moves in line with inflation – we call this index-linking. We also add extra interest on top at fixed rates. The index-linking and extra interest together mean your savings are guaranteed to grow ahead of the rate of inflation, provided they are held for at least a year.
NS&I - 100% security for your moneyWith NS&I you can be sure that all of your capital is 100% secure, however much you invest. We can give you this guarantee because National Savings and Investments is backed by HM Treasury. Back to topTax-free returnsAs well as keeping the value of your savings ahead of rising prices, every penny you get back from your inflation-beating savings is tax-free. This means you don’t have to pay any UK Income Tax or Capital Gains Tax on your investment returns. You can invest tax-free in Index-linked Savings Certificates even if you already have an ISA or any other tax-free investment. And you don’t even need to declare Savings Certificates on your tax return. Because all the returns are yours to keep, the equivalent gross return is higher. To match a tax-free return of, say, 1.5% a year, a basic rate taxpayer would need to earn 1.88% before tax. And the same tax-free return would be worth 2.5% if you pay tax at the higher rate (based on current tax rates). So you can see the advantages of investing tax-free. Back to topHow much can I invest tax-free?From as little as £100 up to £15,000 in each Issue of each term. Unlike ISAs, Index-Linked Savings Certificates aren’t tied to the tax year. You can invest up to another £15,000 tax-free whenever a new Issue goes on sale. Back to topChoice of investment termsIndex-linked Savings Certificates are lump sum investments designed to be held for a set time called a “term”. Currently you can choose either a 3-year or a 5-year term. Or you can invest in both. The rates of interest you earn on top of inflation are fixed and guaranteed for the whole term. These fixed rates increase each year, so you’ll need to keep your Certificates for the whole term to receive the full guaranteed compound interest rate. If you do need your money earlier you can cash in your Certificates at any time. But you need to hold them for at least a year to benefit from any index-linking and extra interest Back to topWhat is an Issue?We sell Index-linked Savings Certificates in Issues, each of which has its own number (for example Issue 42). Whenever there are new guaranteed rates on offer, we release a new Issue. Each time a new Issue goes on sale, you can invest up to another £15,000 tax-free. Back to topDo new Issues affect any I already have?No – any Index-linked Savings Certificates you already have will still earn index-linking and extra interest at the rates guaranteed when you invested. Back to topWho can invest?Anyone aged seven or over. You can invest by yourself or jointly with someone else. Back to topInvesting in trustIf you want to invest in trust for someone else then you’ll need to apply by post using a special form – see Other ways to apply. Back to topInvesting for childrenYou can buy Savings Certificates on behalf of children under seven. The child then becomes responsible for them on their seventh birthday. See Other ways to apply. Back to topCheque and debit card clearanceIf you buy your Certificate by cheque or debit card, your payment will be cleared on the 7th working day (ie excluding weekends and English bank holidays). If you buy your Certificates at a Post Office® branch and pay by cheque, your payment will take two working days longer to clear. We will bank your cheque, or start to process your debit card payment, as soon as we receive it, so please make sure you have enough money in your account at the time. Back to topWhat if I need my money before the end of the term?Index-linked Savings Certificates are designed to be held for the whole investment term to receive the full guaranteed compound interest. This is because the guaranteed rates of extra interest increase each year during the term. But if you do need to take money out earlier, it’s no problem – you can cash in Savings Certificates whenever you like. Any returns you earn are still tax-free. Savings Certificates cashed in within the first year of investing don’t earn any index-linking or extra-interest, so it’s best to keep them for at least a year. If you cash in your Certificates any time after the first year, you will earn index-linking and extra interest for each complete month you’ve held them. To cash in, ask for a form at a Post Office ® branch or contact us and we’ll send you one. To cash in a Certificate held jointly, both investors need to sign the form. Back to top
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