If you look at the NS&I calculator at:
How do these figures relate to the published figure of 5% inflation over the month from 12 June to 12 July and why are they different?
I can see that the 2 year figure is *almost* 5% - but why not the others?
TIA.
In message , Dave writes
You are putting in a holding for just one month, so it is only a one month increase in RPI which is applied. The increases are all about
0.4%, not 5%. They appear to be slightly higher than the increase from the figure for May to the figure for June (234.4 to 235.2, so .0034), as the base RPI for NSI certificates is the last one reported before you buy them. The calculator seems to be adding in one month's interest as well as the RPI change, and the rates of interest vary with the term. Given the rules on cashing in early (which are different for new certificates and reinvestment), the 'value' may not be what you would actually get if you cashed one in today.Sheila
If you cash in within the first year, you get nothing back except your original investment.
Also bear in mind that NS&I use the RPI figure lagged by 2 months.
If you take a look at the latest figures e.g.
Many thanks to respondents - much clearer now.
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