Savings Certificates
National Savings and Investments, or NS&I, is a savings and investment service backed by Her Majesty's Treasury. They offer a range of investment options, including savings certificates. These investment certificates come in two varieties: fixed interest and index-linked. They are fully guaranteed by the Treasury and are tax-free. They are offered for fixed-investment terms of two, three or five years and allow a minimum of one hundred pounds and a maximum of fifteen thousand pounds to be invested. They differ in their security and their potential for capital growth.
These certificates are sold in issues, each with their own rates, terms and conditions. Each new issue allows you to invest more cash tax-free. Usually there are multiple issues per year; the buying of a fixed interest saving certificate issue does not prevent the purchase of an index-linked certificate. It is also possible to purchase several certificates, with different investment periods. For maximum investment returns, you should not withdraw your funds before the end of the investment period: often interest rates increase toward the end of the certificate's life. It is possible however to withdraw your funds before the end of the agreed investment period by cashing in the certificate. Your capital is guaranteed, so there is no risk of losing your investment.
It is possible to invest in savings certificates on behalf of somebody else, by using a special application form. This also makes it possible to invest on behalf of a child under the age of seven. Once the child reaches their seventh birthday however, the savings certificates will belong to them.
Shortly before the certificates mature, NS&I will contact you and ask what you would like to do with the investment. You can choose to cash in the certificates, transfer the funds to new savings certificates or to the newer issue of your current certificates.
To invest in Savings Certificates, contact National Savings and Investments via telephone on 0845 964 5000, or visit their website nsandi.com to purchase certificates online.
