Savers sick of seeing the value of their nest eggs wiped out by inflation were given a boost by the return of a government-backed savings product in the Budget - but they must act quickly to benefit.
National Savings & Investments’ inflation-linked bonds were whipped off the market last summer amid unprecedented demand. Now they are back with their returns aligned to the retail price index, currently at its highest level for 20 years at 5.5 per cent.
Only a handful of products allow basic-rate taxpayers to earn an inflation-beating level of interest: for higher-rate taxpayers, it’s impossible. When they were last available, National Savings & Investment’s three- and five-year Index Linked Savings Certificates paid one per cent over inflation. The same rate now would take it straight into the best-buy table.
National Savings & Investment hasn’t said when the product will hit the market, but the race to sign-up last year means interested savers need to register their interest now at http://tinyurl.com/6cks54h.
Other good news for savers in the Budget was the Government’s introduction Isas for under-18s, following the scrapping of child trust funds (CTFs) last year. All UK kids under the age of 18 who do not have a CTF will be eligible for a Junior Isa, which will to go on sale in autumn this year.