NSI Index Linked Certificates

Savers about to renew their certificates for three years are being offered RPI * 0.01%. Without a crystal ball how can anyone contemplate them? Bill.
Reply to
Bill Ward
"Optimist" wrote in message
It's RPI and it's '+' 0.01% not '*'. It makes a difference.
The Bank of England forecasts CPI inflation to be running at 1.9% this time next year and at 2.4% in the following two years. RPI has always been higher than CPI by maybe by as much as 1%.
To keep the purchasing power of your savings, you need to make, after any tax, at least the value of your own personal inflation rate, which depends on the sort of things you buy and pay for. That may be lower or higher than CPI or RPI.
You won't be able to save safely at anything over 2% currently elswhere, even on a term bond.
Reply to
Norman Wells

I have quite a lot of them and consider them a valuable asset. You can't buy them any more; you can only renew the ones you've already got.
Unlike index linked gilts, the capital value of savings certificates does not fluctuate.
Also they aren't taxed.
And it is the RPI they are linked to, not the CPI.
Reply to

periods since November 2007 is now worth £13,821. In theory post BREXIt the RPI will go up on the other hand being 82 I'm trying to avoid long term investments and live for the moment:-) Bill.
Reply to
Bill Ward

The only conundrum I had recently was whether to renew my 5 year certs for 3 years. If interest rates start going up to combat inflation then it might be beneficial to have an earlier renewal date.
But in the end I decided to do nothing and let them renew for 5 years.
I wish you could still buy them, even at 0.01% + RPI.
Reply to
Tim Woodall

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