NS&I Direct ISA Guarantee Useless?

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?

Reply to
Davy
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Perhaps you are missing their index-linked products.

Reply to
Ronald Raygun

Ronald Raygun wrote in news:MTyxl.2426$ snipped-for-privacy@text.news.virginmedia.com:

I have the max in those but want to use the current year ISA allowance,

DAvy

Reply to
Davy

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