NS&I have just relaunched its five year tax free inflation linked savings certificates. Interest is added tax free on each anniversary from purchase with the return based on the increase in the Retail Price Index plus an average 0.5% bonus a year. The bonus is scaled and will be lower in the earlier years but will average 0.5% if the investment is held for the full five years.
Based on the current increase in the Retail Price Index of 5.2% this provides a very attractive tax free offering. There is of course no certainty that inflation will still be at its current level when the first and subsequent anniversaries come around but, provided you hold the certificate for at least one year, you can cash in your investment without penalty and receive a proportion of the 0.5% bonus.
Savings certificates can be purchased by phone or online but are not available at Post Office branches. Maximum deposit is £15,000.
For more information and to contact us, visit the Financial Planning Partners Ltd online.
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