Is inflation-proofing for you?

Pros and cons of the revamped index-linked certificates from National Savings.

Pluses

*guaranteed inflation protection

*pegged to the RPI measure of inflation not the lower CPI

*tax-free

*can cash in early, though see below

*safe haven in stormy seas

Minuses

*rate is RPI + 0.5%, down from RPI + 1% before

*5 year fixed term only, no 3 year option as before

*no interest in 1st year if cash in early, then a slightly reduced rate

*linked to RPI from next spring, by which time inflation is likely to have fallen

*stocks might not last

NS&I will be emailing 700,000 people who have registered interest in their products, many of them looking for inflation-proof investments. So there are likely to be a lot of applications.

Will they be overwhelmed again and close the issue? NS&I says it wants to keep the certificates on offer for a "sustained period".

They need to raise £14bn this year, which works out as 933,000 customers taking out the maximum investment of £15,000. But, of course, they'll be selling other investments as well.