Savers worried by the erosive effects of inflation will be heartened by news that National Savings & Investments (NS&I) will reintroduce its much loved index-linked savings certificates.  

The government’s savings arm withdrew the RPI-linked certificates last summer due to greater-than-anticipated demand on the back of soaring inflation.  

Today NS&I revealed that because its net financing for 2011-12 was on target it would soon be able to resume the general sale of the certificates.  

Danny Cox, head of advice at Hargreaves Lansdown, applauded the move.  

‘This is great news for savers,’ he said. ‘Index-linked certificates guarantee a tax-free, inflation-beating return and they have been sorely missed.’  

NS&I said that currently only savers with maturing investments in its savings certificates can continue to roll over their investments for a further term.  

The organisation added that, subject to market conditions, it expected to bring the savings certificates back on general sale in 2011/12.

NS&I also confirmed that a new issue of index-linked savings certificates will retain index-linking against the retail prices index (RPI).