National Savings and Investments has increased by 50% to £15,000 the amount savers can invest in its index linked and fixed interest savings certificates.
The executive agency of the Treasury says the move comes in response to demand from customers, asking for greater access to tax-free products, which are particularly beneficial to higher rate taxpayers.
Currently, higher rate payers can get a shade over 6% gross return on five-year index-linked savings certificates, assuming retail price index inflation of 2.6%.
Although easily available, the products attract relatively little investments compared to some NS&I products such as premium bonds. Some £17bn is currently invested in savings certificates, the agency says.IFAonline
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