Conservative investors are being well catered for with the new batch of savings certificates and savings bonds introduced this week by the National Treasury Management Agency. The new savings certificates offer a guaranteed tax-free return of 25 per cent after five years and six months. While the savings bonds offer a guaranteed return of 12 per cent, again tax-free, after three years.

The new tranche of guaranteed tax-free savings products are less attractive than their predecessors. Those saving certificates offered returns of 30 per cent while bonds offered returns of 14 per cent. These rates have now been withdrawn, although existing investors will not lose out.

Individuals can put any amount up to a maximum of £60,000 into the new Saving Certificates and Bonds, while joint accounts are subject to a maximum of £120,000. A minimum investment of £50 applies to Savings Certificates, while the minimum investment in Savings Bonds is £100. See Family Money, page 3