National Savings & Investments (NS&I) is to relaunch index-linked savings certificates pegged to the retail prices index (RPI). NS&I withdrew the certificates last July after they became over subscribed. Currently they are only open to clients who have certificates that are maturing.

Returns will continue to be linked to RPI and tax-free. The maximum that can be saved is £15,000 per individual per investment. Typically certificates pay a specified rate plus RPI. Certificates will be on sale at a later date.

The Chancellor, George Osborne has agreed a £2bn target for new funds to be raised by the Government bank, which will pave the way for the reintroduction of bonds paying out interest based on the retail prices index.

In a statement, NS&I said: “NS&I’s target for net financing for 2011/12 is £2bn in a range of £0bn to £4bn. This positive net financing target will allow NS&I to plan the reintroduction of savings certificates for general sale in due course. Currently only savers with maturing investments in savings certificates can continue to rollover their investments for a further term.

“Subject to market conditions, NS&I expect to be bringing savings certificates back on general sale in 2011/12. NS&I can also confirm that a new issue of index-linked savings certificates will retain index-linking against the RPI”.