As a pensioner I need to be ultra cautious with my nest egg. I was on the point of applying online for a NS&I Direct ISA which currently pays only 1.3% but offers some guarantee against future rampant inflation and attendant high inflation rates. But the small print says "This rate is guaranteed to stay
0.30% above the Bank of England repo rate (the base rate) until 5 April 2009. After that date we may extend, amend or withdraw the guarantee."That seems to mean that whilst inflation is low the product pays a paltry rate, but if inflation/interest rate increases take hold then NS&I can cancel its guarantee.
This seems pretty worthless as a hedge against inflation: or am I missing something?