19 July 2010

National Savings Withdraws Savings Certificates from Sale

From today, National Savings & Investments (NS&I) are pulling their Savings Certificates from sale. That includes the Index-Linked variation which were helpful in protecting against inflation.

It's a sign of these volatile times really. As a government agency, their mandate is to match inflows of money against outflows (within reason - and that means within £2 billion!!), and their various products have proved too popular, so there has been too much money coming in. It's easy to guess why that might be - even with unattractive interest rates (not that 2.5% tax free was too shabby) the attraction was government-backed security.

The result is that the search for good returns on savings remains difficult.We'll shortly be launching our "Campaign Against Lazy Money" to help address this.

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