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NS&I withdraws inflation-linked savings accounts
Business digest: British public lose one of the few means of guaranteeing a real-terms return on savings
NATIONAL Savings and Investments has withdrawn its inflation-linked savings accounts after the scheme's popularity among the British public pushed the government-backed group close to the total amount of money it is allowed to raise.
Since May, nearly half-a-million people have put money into NS&I accounts, which return an interest rate of inflation plus 0.5 per cent. The terms meant NS&I offered one of the few products that guaranteed savers a return on their money in real-terms.
Patrick Connolly of financial advisers AWD Chase de Vere said the news means "Savers face the unwanted dilemma of keeping their money in cash and accepting it will lose value in real terms or taking more risk to try to generate better returns."
Savers wanting a guaranteed real-terms return can take their money to the Post Office, which has extended its Inflation Linked Bond until September 16.
Read a full report at the Times (subscription). ·
