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National Savings & Investment Savers Lose Out Due To A Computer Fault

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Thousands of savers with National Savings & Investments have missed out on returns due to a computer glitch.

Around 15,000 people with one of the group's index-linked savings certificates who cashed in the product early have received back less money than they should have done due to deflation.

The product aims to enable savers to beat inflation by paying returns equal to Retail Prices Inflation plus interest, currently of 1pc, on the anniversary of when the product was taken out.

If inflation turns negative, as it did in March this year, it is classed as being 0pc, meaning investors receive only the interest payment on their savings.

But a computer glitch has meant that people who cashed in inflation-linked savings products outside of their anniversary date have had the current negative rate of inflation offset against the interest they should have been paid.

NS&I said it was not possible to say how much money savers had lost as a result of the error, but people can invest up to £15,000 into each issue of inflation-linked savings certificates, and can hold several issues at once.

The Government-backed group is currently in the process of fixing the problem, after which it will contact effected customers and reimburse them.

But the group has warned that it is likely to be months rather than weeks before people get their money back.

An NS&I spokesman said: "A number of our customers who have cashed in their Index-linked Savings Certificates between purchase anniversary dates have received lower than expected payments, due to our IT systems having to deal with a continuous period of negative inflation for the first time since these certificates were launched over 30 years ago.

"This is now being rectified and we will be making a retrospective repayment to anyone affected.

"These changes to our systems are not yet in place, however any customers who have been affected need take no action as we will be contacting them and correcting the repayment."

Customers who received interest on their anniversary date or who cashed in their certificate at this time have not been affected by the problem.

I remember there was a thread on the calculation someone received for cashing in. Maybe they were subject to the 'glitch'?

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