Alongside the Budget, government-backed National Savings & Investments announced it is to bring back its hugely popular savings accounts that give a tax-free return that beats inflation.
Last summer, NS&I closed its index-linked savings certificates - which pay 1 per cent over the rate of inflation as measured by the retail prices index (RPI) - to new customers for the first time since their launch 35 years ago. Since then, the rate of annual RPI growth has climbed to 5.5 per cent.
The certificates will return to general sale in 2011/12 but a date has not yet been set.
NS&I also confirms that a new issue of the Certificates will retain index-linking against the retail prices index (RPI), rather than the consumer prices index, whose rate of increase tends to be lower.
Savers, who are seeing inflation erode the value of their money, will welcome the announcement as only a handful of savings products give returns that beat inflation.