UK NS&I Index-Linked Savings Certificates (2026/27)
NS&I Index-linked Savings Certificates 2026/27: no longer on sale, renewals track CPI + 0.01% on 3- or 5-year terms, tax-free, plus the alternatives.
Current status
NS&I says Index-linked Savings Certificates are no longer on sale. Existing holders can renew at maturity: for another term of the same length, or for a 3-year or 5-year term. Renewals are index-linked to CPI (not RPI) plus 0.01%, and a certificate renewed from 23 July 2023 onwards cannot be cashed in before the end of its term, apart from a right to cancel within 30 days of renewing. NS&I has launched other products for specific funding objectives (Green Savings Bonds, British Savings Bonds 2024) but has announced nothing on ILSCs.
Inflation-hedge alternatives for new savers
- Index-Linked Gilts - government bonds with RPI-indexed coupons + principal. Tradeable; hold to maturity for full protection. Best in ISA / SIPP for tax-free.
- Premium Bonds - tax-free, government-backed, but not inflation-linked. NS&I's prize fund rate is 4.35% (variable) from the July 2026 prize draw; individual prizes are not guaranteed.
- Cash ISA fixed-rate - tax-free; the rate is fixed at the market level when you open it, not linked to inflation.
- Index-linked gilt funds within ISA - e.g. iShares Index-Linked Gilts UCITS (INXG.L). Diversified but the price moves; not pure capital protection.
- NS&I British Savings Bonds (when issued) - higher rates than typical NS&I but not inflation-linked.
Related guides
- UK Premium Bonds 2026/27 - alternative NS&I tax-free vehicle.
- UK Gilts Direct vs ETF 2026/27 - inflation-linked gilt access.
- UK Cash ISA vs Taxable 2026/27 - tax-free wrapper.
- UK Inflation Calculator Guide - RPI vs CPI.
Frequently asked questions
What are NS&I Index-Linked Savings Certificates?
Government-backed savings certificates from National Savings and Investments whose return is index-linking plus a small amount of additional interest. For renewals today that is the Consumer Prices Index (CPI) plus 0.01%. The returns are tax-free. NS&I is backed by HM Treasury, so your money is 100% secure rather than being limited to the FSCS cap. Existing holders can renew for a 3-year or 5-year term, or for another term of the same length as the one ending.
Are they currently available?
No. NS&I says Index-linked Savings Certificates are no longer on sale. You cannot buy new ones; the only way to hold them is to renew certificates you already have when they mature. NS&I has not announced any plan to put them back on sale.
I have existing certificates - what should I do?
NS&I writes to you around a month before a certificate matures, explaining your options: (a) renew for another term of the same length, at the rate quoted in the letter; (b) renew for a different term (only 3-year and 5-year terms are available); or (c) cash it in and move the money elsewhere, for example a Cash ISA or Premium Bonds. Before renewing, note that a certificate renewed from 23 July 2023 onwards cannot be cashed in before the end of its new term - you only have the right to cancel within 30 days of renewing. Renewal keeps a tax-free, inflation-linked return, but only choose a term you can leave the money untouched for.
What are the alternatives for new savers?
Inflation hedge options: (a) Index-Linked Gilts - UK government bonds with coupons + principal indexed to inflation. Bought through a broker. Tradeable; the coupon is taxable interest but gains on gilts are exempt from Capital Gains Tax. (b) Premium Bonds - tax-free and government-backed but not inflation-linked; NS&I sets the prize fund rate at 4.35% (variable) from the July 2026 prize draw. Prizes are not guaranteed, so your own return can be more or less than that. (c) Easy-access savings + Cash ISA - follow market rates, not inflation. (d) Index-linked gilt funds - within an ISA / SIPP wrapper. None matches the tax-free, capital-secure inflation link of an ILSC.
Do ILSCs track RPI or CPI?
CPI. NS&I changed the index from the Retail Prices Index (RPI) to the Consumer Prices Index (CPI): certificates renewing from 1 May 2019 are index-linked to CPI, and older certificates on index-linked extension terms (Issues 1 to 9) switched to CPI from their next anniversary on or after 1 May 2019. NS&I notes that CPI is generally lower than RPI, so this will probably mean a lower return. The 0.01% additional interest on top of index-linking continues.
How tax-efficient are ILSCs?
Highly. NS&I describes the returns as all tax-free, so they do not use your Personal Savings Allowance or ISA allowance. That matters most for additional-rate taxpayers (who have no Personal Savings Allowance) and higher-rate taxpayers with significant savings. Because they can no longer be bought, existing holders should think carefully before cashing them in - the money cannot go back in.
Could they reopen?
Possible but not promised. NS&I products are used to meet government funding needs, and new products have been launched for specific purposes (Green Savings Bonds, and British Savings Bonds in 2024). NS&I has made no announcement about Index-linked Savings Certificates returning. If you want to hear about any new product, sign up for NS&I email updates at nsandi.com.
What about Index-Linked Gilts as an alternative?
Closest match to ILSCs for new investors. Government-backed (same protection level as NS&I). RPI-linked. Tradeable on secondary market. Available via brokers. Key differences from ILSCs: (a) Capital gains on gilts are CGT-EXEMPT (Section 115 TCGA 1992) - good. (b) Interest (coupon) is taxable as savings income subject to PSA - so within ISA / SIPP wrapper for tax-free. (c) Market price varies with interest rates + inflation expectations - capital can fluctuate before maturity. (d) Sold at market price, redeemed at par (or RPI-uplifted par). Most practical: hold within ISA / SIPP for tax-free returns.