Cash values for NS&I’s index-linked savings certificates in may 2013

Retail Prices Index figure is now 248.7

The tables attached provide the May 2013 cash values for Index-linked Savings Certificates held for one year or more.

NS&I’s Index-linked Savings Certificates are lump sum investments, designed to be held for fixed terms. They pay a fixed rate of interest on top of the rate of inflation (as measured by the Retail Prices Index) to ensure that savings stay ahead of rising prices. On each anniversary interest and index-linking are added to the Certificate.

NS&I’s spreadsheet calculator is a quick and easy way to check approximately how much Index-linked Savings Certificates are worth and includes supplements, bonuses and extra interest earned at the relevant rates for each Issue.  The calculator can also be accessed here.  Both the calculator and the attached tables are only for Certificates invested in or renewed before 20 September 2012.

Retail Prices Index

For working out these values in May1 the Retail Prices Index figure is 248.7, meaning that the Index level is 3.3% higher than it was a year ago.

Index-linked Savings Certificates rates of return

Index-linked Savings Certificates offer a tax-free2 return that beats inflation when held for the full investment term.

Issues currently available to existing customers only Rate p.a./ AER3
5-year (Issue 51)

Guaranteed compound rate over 5 years

RPI4 + 0.15%
3-year (Issue 24)

Guaranteed compound rate over 3 years

RPI4 + 0.15%
2-year (Issue 41)*

Guaranteed compound rate over 2 years

RPI4 + 0.15%

*Only available to customers with maturing 2-year Certificates

In August 2012 NS&I announced changes to its Savings Certificates, these changes can be viewed here:

Notes to Editors

  1. The RPI in March 2013 (announced 16 April 2013) will apply to investments, valuations and repayments made by customers during May 2013.
  2. All returns are free of UK Income Tax and Capital Gains Tax.
  3. AER stands for Annual Equivalent Rate and enables the comparison of interest rates from different financial institutions and across different products on a like-for-like basis. It shows what the notional annual rate would be if interest was compounded each time it was credited or paid out. Where interest is credited once a year the rate quoted and the AER will be the same.
  4. Retail Prices Index (RPI) is the measure of inflation NS&I uses to calculate changes in the value of its Index-linked Savings Certificates. The RPI is compiled and published monthly by the Office for National Statistics. The RPI can go up or down.
  5. Valuations for 2-year, 3-year and 5-year Certificates invested in or renewed before 20 September 2012, are shown in separate tabs of the attached document. They are for indicative purposes only and show the value if you were to cash in during May 2013.
  6. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to over 26 million customers. All products offer 100% capital security, because we are backed by HM Treasury.
  7. Subscribe to the NS&I RSS newsfeed.  Simply copy and paste this link into your RSS reader to receive regular news alerts from NS&I.