Nat. Savings U.K. Index-Linked Certs - Which Index ?

Bitstring , from the wonderful person Phil Hampson said

You are being overly suspicious. 'They' have repeatedly said they'll continue to use RPI for IL certs, gilts, IL pensions, etc. Of course, they have been known to change their mind, but expect major squeals from the big investors if they try it with previously issued stocks.

The Government has said that RPI will continue to be the basis for uprating of pensions and index-linked securities. They have also contradicted themselves about the future of ISAs. You might disbelieve them. I couldn't possibly comment.

FWIW, if you're doing your own calculations, IIRC, NS lag the RPI by 2 months. I've never managed to come up with exactly the same indexation figures as NS, but I'm not usually that far off.

Allan in North Yorks

Thanks for all your comments.

Until NS define their terms of indexation explicitly I will continue to ask for confirmation if I buy more certs.

I have no idea what the Indices or acronyms FWIW & IIRC are however,

Phil

FWIW = For What Its Worth - ie what follows might not be useful

IIRC = If I Recall Correctly - ie what follows might be wrong in detail

Thanks Peter

You learn something new every day IGTS ( I'm glad to say )

Cheers Phil

An interesting final (?) comment to this thread.

I recently wrote to NS&I to ask for confirmation that RPI will be the Index used on the Issue which I have just bought. Their reply was that,although there are no current plans to change from RPI, there is no guarantee that this will be used in the future and that possibly the Index used could change and that a new ( lower ) Index could possibly be applied retrospectively to the Current Issue when the certificates mature in 3 years time.

Phil