Index-linked Savings Certificates

Do you have a Certificate
that matures soon?

Here’s what you need to do next

What you need to decide

When you invest in an Index-linked Savings Certificate you agree to keep it until the end of the term. We will write to you around 30 days before that date to let you know your options.

These will normally include:

  • renewing your Certificate for another term of the same length
  • renewing it for a term of a different length
  • cashing it in

To choose the first option, you don’t need to do anything – your Certificate will automatically renew for another term of the same length.

But make sure this is what you intend. If you change your mind after it has renewed and want to cash in before the end of the new term, we’ll charge you a penalty equal to 90 days’ interest on the amount cashed in. And you’ll lose the index-linking on your whole Certificate for that investment year.

Remember that the interest rate for renewing your investment could be higher or lower than the rate for your current term.

The information on this page is only relevant if you have a Certificate maturing soon.

Not heard from us?

Call us if you have any questions or you haven’t heard from us 30 days before the end of your investment term. And don’t forget to tell us if you change your address or contact details.

Call us

Renewing your Certificate

Renewing your Certificate

We currently offer lssues which are only available to customers with maturing Certificates. They are not on general sale. You can renew up to the total value of your maturing Certificate, including all the interest and index-linking you earned. Or you can cash in some of your investment and renew the balance. You won’t be able to add any extra money to your Certificate.

Interest rates

These are the rates currently available for renewing a mature Certificate:

Issue Term Date rate applied from Interest rate
Issue 42 2 year only available when rolling over from existing 2 year Certificate 5 July 2013 Index-linking +0.05% tax-free/AER
Issue 25 3 year 5 July 2013 Index-linking +0.05% tax-free/AER
Issue 52 5 year 5 July 2013 Index-linking +0.05% tax-free/AER

Definitions

Tax-free means that interest and index-linking are exempt from UK Income Tax and Capital Gains Tax.

AER (Annual Equivalent Rate) is a notional rate that illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and AER are the same.

Index-linking means the value of your investment moves in line with inflation as measured by the Retail Prices Index (RPI)

  • We've made changes to Index-linked Savings Certificates

    You might be familiar with these changes. It depends when you last bought Certificates and their maturity dates. You might have some that have already matured but others with some time to run. The changes only take effect as each individual Certificate matures, if you decide to renew it.

    Key date for changes: 20 September 2012

    The changes were introduced on 20 September 2012. Any Certificates you bought before that date which haven’t matured (for example a 5-year term ending in 2016) won't be affected yet.

    Any mature Certificates which you renewed on or after 20 September 2012 will be affected by the changes.

  • Changes at a glance

    Financial

    • Penalty and loss of index-linking when you cash in early
    • Minimum balance of £100
    • Single annual rate of interest for each Issue

    Looking after your investment

    • Fewer options when your investment matures
    • Annual statements to help you keep track
    • New online and phone service

    Rules for investors

    • Joint investors can combine their investment allowance
    • Minimum age 16 for new and renewed investments

    Read our changes leaflet for full details

Cashing in early

Cashing in early

Index-linked Savings Certificates are designed to be held for the whole of your chosen investment term. You can cash in at the end of a term with no penalty or loss of interest.

You can also cash in before that, subject to a penalty or receiving a lower return depending on when you invested or renewed – see below.

Certificates invested in or renewed on or after 20 September 2012

If you cash in early we will deduct a penalty from your payment, equivalent to 90 days’ interest on the amount cashed in. And you’ll lose the index-linking on your whole Certificate for that investment year.

Bear in mind that if you cash in all of your Certificate within 90 days of renewing, you will get back less than your renewal value.

When you cash in part of a Certificate, at least £100 must remain in the Certificate to keep it open.

Certificates invested in or renewed before 20 September 2012

If you cash in early, we’ll pay you the most recent anniversary value plus any positive index-linking and fixed interest for each complete month since then.

If the RPI figure has gone down since the previous anniversary, you will still receive the full anniversary value plus fixed interest for each complete month.

The rates increase each year to make up the overall annual compound rate, so you won’t receive the full compound return if you cash in early.

  • How to cash in

    Certificates invested in or renewed on or after 20 September 2012

    Registered for our online and phone service? Log in or call us at any time with your NS&I number and password to hand.

    Log in

    Call us

    Or complete a cashing in form and send it to us.

    Certificates invested in or renewed before 20 September 2012

    Complete a cashing in form and send it to us.

    How long will it take?

    When you cash in online or by phone, we’ll send your payment within three working days of receiving your instructions. When you do this by post, we’ll send your payment within five working days.