Banking: National Savings & Investments

Lord May of Oxford Excerpts

Wednesday 5th December 2012 Lords Chamber

[Lord Sassoon]

I am very happy to accept what my noble friend has said. I have probably answered more questions on AIM shares and ISAs than on practically any other topic. It is also worth saying that it has been announced in today’s Statement that the ISA limit will go up in line with inflation in April 2013—so, by another £240, to £11,520—enabling 24 million people to continue to benefit.

[Lord May of Oxford]

My Lords, why is NS&I no longer issuing tax-free, index-linked savings certificates? They are an extraordinarily effective instrument for some who wish just to preserve the real value of their savings, free of greed. Thus, it seems to me a particularly meritorious and efficacious instrument. Why is it no longer issuing new issues?

[Lord Sassoon]

My Lords, NS&I takes index-linked and fixed-interest savings certificates on and off sale. When they were last on offer, during 2011, demand reached completely unprecedented levels. It meant that the sales volumes far exceeded what was anticipated and what represented value for money in terms of the target that the Treasury set for NS&I.