Index-linked Savings Certificates
From Wikipedia the free encyclopedia
Index-linked Savings Certificates are inflation linked bonds from National Savings and Investments, the state-owned savings bank in the United Kingdom. The bond terms are typically 2,3 or 5 years. The returns are linked to CPI with a tiny interest rate on top. Bonds can no longer be cashed in at any time, but only on maturity.
Index-linked Savings Certificates are free from UK income tax making them relatively attractive to tax-payers, particularly higher rate tax-payers. They are backed by the Treasury of the UK Government so are considered to be safe deposits.
The bonds come in issues. Each issue has a per person investment limit, currently 15000 pounds.
The certificates used to be known as "Granny Bonds" because they were originally only available to savers who were over the retirement age.
| Date | Issue | Return |
|---|---|---|
| 19 July 2010 | withdrawn | N/A |
| 7 April 2010 | 20th Issue | RPI + 1.00% |
| 29 April 2009 | 19th Issue | RPI + 1.00% |
| 18 June 2008 | 18th Issue | RPI + 1.00% |
| 21 May 2008 | 17th Issue | RPI + 0.70% |
| 2 April 2008 | 16th Issue | RPI + 0.25% |
| 25 April 2007 | 15th Issue | RPI + 1.35% |
| 26 October 2006 | 14th Issue | RPI + 1.15% |
| 20 May 2006 | 13th Issue | RPI + 1.05% |
| 13 April 2006 | 12th Issue | RPI + 0.90% |
| Date | Issue | Return |
|---|---|---|
| 7 September 2011 | withdrawn | N/A |
| 12 May 2011 | 48th Issue | RPI + 0.50% |
| 19 July 2010 | withdrawn | N/A |
| 7 April 2010 | 47th Issue | RPI + 1.00% |
| 29 April 2009 | 46th Issue | RPI + 1.00% |
| 18 June 2008 | 45th Issue | RPI + 1.00% |
| 21 May 2008 | 44th Issue | RPI + 0.70% |
| 2 April 2008 | 43rd Issue | RPI + 0.35% |
| 25 April 2007 | 42nd Issue | RPI + 1.35% |
| 20 May 2006 | 41st Issue | RPI + 1.15% |
| 13 April 2006 | 40th Issue | RPI + 0.95% |
| Date | Issue | Return |
|---|---|---|
| 13 April 2006 | ?th Issue | RPI + 0.85% |
On 19 July 2010, due to high investment levels the certificates were withdrawn from general sale in order to keep investments within the financing target set by HM Treasury.[1] After re-introduction this happened again on 7 September 2011.[2]
External links[edit]
- Index-linked Savings Certificates Homepage.
- Past Issues from InvestmentGuide.
- UK Inflation and Where to find RPI data from the Office for National Statistics.
- NS&I Index-Linked Savings: Q&A from The Daily Telegraph.