National Savings & Investments (NS&I) is offering savers the chance to earn interest above the rate of inflation with its savings certificates.

The Inflation-Beating Savings are lump-sum investments which are held for three or five years and pay a fixed rate of interest above inflation.

NS&I launched its latest issues of the certificates, which give savers the opportunity to invest up to £15,000 tax free, in April.

Savers receive interest, based on the rate of inflation for that year, on the anniversary of the date they invested their original sum.

The Retail Price Index, which is used to measure inflation, is currently at minus 1.1 per cent, and rates currently being offered are at one per cent above this.

However, NS&I said that while negative inflation means no index-linking is added at the end of the year, long term gains will still add up.

Peter Cornish, director of customer offers at NS&I, explained: “Inflation-beating savings offer savers the security of knowing that their investment will always be protected from inflation.

“Even with the current deflation, provided that the certificate is held for the whole term, the investment will still receive the full guaranteed compound interest.”