Citigroup criticise National Savings Index Linked Certificates

Citigroup believe that the government should reduce the rates offered on the national Savings & Investments (NS&I) Index Linked Certificates as the rates are too attractive and are pulling money away from the banks. Citigroup criticised the recent expansion of the scheme saying that the interest rate was too high and that the government should be trying to raise money by issuing more gilts. The bank believes that the certificates are an expensive way for the government to borrow money as the interest promised to investors is likely to be above the yield paid on gilts. "While the new National Savings Index ...