Index-linked Savings Certificates are no longer on sale. Find out how to manage your current Certificates if they’re coming up for maturity.

Important changes to Index-linked Savings Certificates

No access during the term

Previously, we gave you access to your investment before the end of its term but charged a penalty equal to 90 days’ interest on any money you took out early plus you would lose a year’s index-linking on the whole Certificate. Now, once you’ve decided to renew a Certificate from 23 July 2023 onwards, you won’t have access to your money until the Certificate reaches the end of its new term.

You will however have the right to cancel within 30 days of renewing your Certificate.

Change to Consumer Prices Index

If you decide to renew an existing Certificate that was linked to the Retail Prices Index (RPI), we will calculate the index-linking using the Consumer Prices Index (CPI) instead. The CPI is generally lower than the RPI, so this means you will probably receive a lower return.

Find out how much your Certificates are worth

You can easily find out how much your Certificates are worth by logging in to your online account.

You can also get a quick estimated valuation for any Certificates, without having to log in.

Get an estimated valuation

Managing your maturing Certificates

We’ll write to you around a month before your Certificate matures explaining the options available to you.

You’ll need to decide if you want to:

• automatically renew your Certificate for another term of the same length
• renew it for a term of a different length (only 3-year and 5-year terms available)
• cash it in

If you choose to renew your Certificate for another term of the same length, you’ll receive the interest rate we quote in your letter, even if our rates go down before your maturity date. If you renew for a different term, you’ll receive the rate on offer on the date your Certificate matures. Bear in mind that this could be higher or lower than the rate in the summary box we send you.

See the relevant summary box for the renewal rates on offer:

Index-linked Savings Certificates summary box for renewals up to 22 July 2023

Index-linked Savings Certificates summary box for renewals from 23 July 2023 onwards

You can see the relevant customer agreement here:

Key features leaflet, including customer agreement, for renewals up to 22 July 2023

Key features leaflet, including customer agreement, for renewals from 23 July 2023 onwards

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

Cashing in early

Certificates starting their term on or before 22 July 2023

You can cash in your Certificate at the end of your chosen term with no penalty.

You can also cash in before that, but we will deduct a penalty from your payment equivalent to 90 days’ interest on the amount cashed in. You will also 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 the amount you renewed.

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

Certificates starting their term on or after 23 July 2023

These Certificates cannot be cashed in before the end of your chosen term.

How to cash in Certificates that started their term on or before 22 July 2023

If you’re registered to manage your savings online, you can log in at any time to cash in.

Not registered? You can also cash in Index-linked Savings Certificates online without having to create an account.

Cash in my Index-linked Savings Certificates

FAQs

• Why have you changed the index on Index-linked Savings Certificates from RPI to CPI?

  In 2013, as a result of flaws in the way it is measured, RPI lost its status as a National Statistic. The 2015 Johnson Review of Consumer Price Statistics recommended that government and regulators should work towards ending the use of RPI as soon as practicable. Starting in 2010, successive governments have reduced their use of RPI. The indexation of direct taxes, benefits, public sector pensions, the State Pension and business rates have all moved from RPI to CPI.

  The change also helps us to balance the interests of our savers and the cost to taxpayers.

• How will this affect me?

  Here is an illustration of what you could expect to receive from a £1,000 investment based on the current RPI index, and what the return could be based on CPI.

  Term	RPI (using January 2019 rate of 2.5%)	CPI (using January 2019 rate of 1.8%)
  2-year Index-linked Savings Certificate	£1,050.83 Index-linking + 0.01%	£1,036.53 Index-linking + 0.01%
  3-year Index-linked Savings Certificate	£1,077.21 Index-linking + 0.01%	£1,055.29 Index-linking + 0.01%
  5-year Index-linked Savings Certificate	£1,131.97 Index-linking + 0.01%	£1,093.85 Index-linking + 0.01%

  These are illustrations only, so they don’t take into account your individual circumstances. They assume that you don’t make any withdrawals during the term.

  The rates of inflation can go up or down so the illustrations are not a guarantee of the return you will receive. The actual return you receive will depend on the levels of the relevant index that apply at the start and end of each investment year.

• Will this affect my existing Certificates?

  No, it won’t affect any existing Certificates you have until the end of the investment term. However, if you decide to renew any Certificates that mature, your index-linking will then be calculated using the Consumer Prices Index (CPI), not the Retail Prices Index (RPI). The CPI is generally lower than the RPI, so this means you will probably receive a lower return. You will continue to receive 0.01% interest in addition to the index-linking.

  Paying tax on your savings

• What's the difference between RPI and CPI?

  Both the Consumer Prices Index (CPI) and the Retail Prices Index (RPI) measure inflation. Each aims to measure the changes in the cost of buying a 'basket' of products and services, but they cover different items and there are differences in the formulas used.

  To find out more about CPI and RPI, visit the Office for National Statistics website at ons.gov.uk and search for CPI All Items Index or RPI All Items Index.

  ons.gov.uk

  Paying tax on your savings

• Are Index-linked Savings Certificates still a good investment?

  Index-linked Savings Certificates are still a popular investment with a unique combination of index-linking plus a small amount of additional interest – all tax-free.

• I have an old Certificate on index-linked extension terms – will it be affected?

  Yes, we are changing the return on older Certificates that are on index-linked extension terms (Issues 1 to 9). From each of these Certificate’s next anniversary that falls on or after 1 May 2019, we will calculate the index-linking using the Consumer Prices Index instead of the Retail Prices Index.

  Find out more about index-linked extension terms