I wondered whether the NS&I index linked savings certificates can fall in value during times of negative inflation. However the T+C shows that the growth during each year does not go below zero even if inflation does.
- In the event of a decrease in the Retail Prices Index:
(a) any maturity value will never be less than the preceding anniversary value, or, in the case of a Certificate with a term of one year, the purchase price, together with interest at the relevant rate for the period from the preceding anniversary date to the maturity date; (b) any anniversary value will never be less than the preceding anniversary value or, in the case of the first anniversary, the purchase price, together with interest at the relevant rate for the year.
Just thought I'd share that...
Robert