Despite only being re introduced in May National Savings & Investments (NS&I) has issued a warning over excess demand for these popular savings products.
NS&I has said that it will need to monitor ‘pent up demand’ for the Index Linked Certificates, which have been popular amongst savers.
The certificates provide a tax free return which is guaranteed to be above inflation. Despite the £15,000 cap on how much each saver can invest per issue the products have been popular as savers try and combat the twin effects of low interest rates and high inflation.
NS&I put the Index Linked Certificates back on sale for savers in May when the government relaxed its grip on the organisation allowing it to take in an additional £2 billion from UK savers.
NS&I Chief Executive Jane Platt, said, ‘This positive net financing target allowed us to plan the reintroduction of index-linked savings certificates for general sale in May 2011.’
She continued, ‘However, we recognise that the pent-up demand for the product needs to be assessed and managed carefully on an ongoing basis to ensure that we maintain appropriate service standards.’
When the certificates were last taken off the market they were withdrawn with very little notice, leaving many savers unhappy that they were unable to invest.