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

The U.K. National Savings Certs have always in the past using the RPI Index for calculating the index portion of the interest payable on these investments I have just bought some of these ( not exciting but useful as a safe portion of my portfolio ) but have had some difficulty in confirmong which Index is now used. All their literature speaks loosely of "index-linked" but nowhere was I able to find a reference to the RPI Index.When I phoned them they confirmed that the RPI Index is still used. but I have now asked for written confirmation. However, I am suspicious, with their apparent reluctance to specify this in their literature, that they will quietly switch to the new, lower goverrnment measure of inflation in the future. I suggest any investors should check this important point before investing in these. Anyone agree or am I being over suspicious ?

Phil

Reply to
Phil Hampson
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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.

Reply to
GSV Three Minds in a Can

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.

Reply to
Terry Harper

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

Reply to
allang

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

Reply to
Phil Hampson

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

Reply to
Peter Lawrence

Thanks Peter

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

Cheers Phil

Reply to
Phil Hampson

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

Reply to
Phil Hampson

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