Savers have been given a much needed boost after the Budget revealed that National Savings & Investments (NS&I) is to reintroduce its index-linked savings certificates.
Amongst the Budget small print, it was confirmed that the state-backed bank is planning to launch a new batch of inflation-beating savings certificates later this year.
NS&I said the new certificates will be linked to Retail Prices Index inflation, which currently stands at 5.5%.
With inflation soaring, savers have been hard-pushed to find a savings account which will help maintain the real value of their money.
Following the announcement of the latest official inflation figures earlier this week, Moneyfacts.co.uk revealed only eight savings accounts are currently available which will see a basic rate tax payer stave off the effects of Consumer Prices Index inflation, which currently stands at 4.4%.
No such accounts can be found to help higher rate taxpayers, while beating RPI is a challenge that no savings account can currently achieve.
The last batch of NS&I index-linked savings certificates were withdrawn in July last year, after sales of the products exceeded expectations.
If and when the new certificates go on general sale, the clamour amongst savers to place their money into the bonds is certain to be even greater.
Patrick Connolly, head of communications at AWD Chase de Vere, said it would be fantastic news for savers if National Savings Index Linked Certificates are re-launched.
"Many savers currently face the dilemma of losing money in real terms on their cash savings or putting their capital at risk as they try and generate better returns
"These products provided the only way that savers could be sure of getting returns greater than inflation while still protecting their capital
"If Index Linked Certificates are re-launched our advice to many savers will be to get in quickly, because they may not be around for long."
Dr. Ros Altmann, director-general of Saga, added: "We do not know exactly when they will be reissued, but it can't happen soon enough.
"Month after month, savers are seeing the value of their hard-earned savings whittled away by inflation.
"The sooner they can have some proper protection from National Savings inflation-linked certificates, the better."
Find the best savings rates for you - Compare savings accounts
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.