Changes - We're changing Index-linked Savings Certificates

Index-linked Savings Certificates will start changing on 20 September 2012.

What’s new?
Here is a summary of what’s changing.

Financial changes

• penalty and loss of index-linking for cashing in early
  The penalty is equivalent to 90 days’ interest on the amount cashed in. And you’ll lose the index-linking on your whole Certificate for the investment year in which you cash in.

• minimum balance of £100
  If you cash in part of your Certificate, you’ll need to keep at least £100 invested for the Certificate to remain open.

• single annual rate of interest for each Issue
  We will pay a guaranteed rate of interest that stays the same for the length of the term (previously the annual rates started low and increased each year during the term).

Looking after your investment

• fewer options when your investment matures
  You’ll no longer be able to switch to Fixed Interest Savings Certificates without affecting your investment allowance for any new Issues that may be on sale.

• annual statements to help you keep track
  Shortly after each anniversary date, we’ll send you a statement showing your Certificate’s value and how much interest and index-linking you’ve earned.

• new online and phone service
  This gives you a secure and convenient way to keep track of your money with NS&I and keep your details up to date.

Rules for investors

• joint investors can combine their investment allowance
  If you invest jointly with another person, you can now combine your allowances and invest up to £30,000 in each Issue (when on sale).

• minimum age 16 for new and renewed investments
  Children under 16 can no longer buy or renew Savings Certificates, but they can keep any existing investments until the end of their current term.

What happens next?
If you have an existing Index-linked Savings Certificate, don’t worry. The changes will only affect you if your Certificate matures on or after 20 September 2012, and you choose to renew it for a further term. So you don’t need to do anything yet.

We’ll write to you around 30 days before your Certificate matures, to remind you that it’s time to decide what to do with your money. We’ll include full details of the changes to your investment, together with information explaining your choices for renewing or cashing in.