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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 (only 3-year and 5-year terms available)
  • 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 43 2 year only available when renewing from an existing 2 year Certificate 28 March 2016 Index-linking +0.01% tax-free/AER
Issue 26 3 year 28 March 2016 Index-linking +0.01% tax-free/AER
Issue 53 5 year 28 March 2016 Index-linking +0.01% tax-free/AER

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

AER (Annual Equivalent Rate) 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 the 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). To check the RPI, visit the Office for National Statistics website at and search for RPI All Items Index.

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.

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.