NS&I closure 'will hit every client'

Viv King, principal at VK Professional Financial Administration, says an average at-retirement couple could miss out on tax-free benefits and inflation safeguards on 30% of their investment following the closure. He says, with £100,000 to invest, both partners could have put up to £15,000 each into an index-linked certificate typically paying a rate of inflation as measured by the Retail Prices Index (RPI), plus 1%. But with RPI at about 5%, and the bonds offering tax-free interest, NS&I was yesterday forced to close part of its savings business because sales "far exceeded" the level ...