NS&I touts tax-free savings

By putting money into products such as Savings Certificates and Fixed Interest Savings Certificates earned retail investors an estimated £580m in interest, of which £116m would have been taken by tax if it had not been for the tax free status of these products, NS&I says. However, the tax saved came on interest rates that are well below what retail investors could, for example, get from a cash-only ISA. For example, the 5-year 77th issue fixed interest savings certificate from NS&I promises an interest rate of 3.65% - some 85 basis points below the current Bank of England base rate. ...