Inflation-link NS&I bonds return

The index-linked bonds were taken off the market almost a year ago

One of the most popular savings products of recent years – taken off the market because of high demand – is set for a return.

Index-linked bonds are being reintroduced by National Savings & Investments, giving savers a protection against inflation.

Savers will be able to invest up to £15,000 tax free in a five-year bond with an interest rate of RPI plus 0.5%.

The bonds were taken off sale in July 2010 due to the exceptional demand.

In the Budget in March, the Chancellor of the Exchequer, George Osborne, increased the net financing target for NS&I by £2bn.

To meet this target NS&I needs to achieve inflows from savers of some £14bn.

This has allowed the potentially attractive inflation-beating savings product to be reintroduced.

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