NS&I launches inflation busting savings accounts

National Savings and Investments (NS&I) has launched two new inflation-busting savings accounts.

The government-back savings provider said its Index-linked Savings Certificates offer savers the chance to invest up to £15,000 tax free per issue.

Interest on the two accounts will be tied to the retail price index (RPI) rate of inflation.

Certificates can be held for a three of five year term with a minimum investment of £100.

Compound interest is paid for each year that the investment is held.

NS&I said: “Interest and any positive index-linking are applied annually on each anniversary date.

“However, if index-linking is negative from one anniversary to the next, it is ignored and the extra interest is still added.”

As such, the original capital investment is 100% secure even if the RPI enters deflation.

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