Post Office launch an inflation linked bond, should you believe the hype?

The Post Office has launched the latest version of the Inflation Linked Bond. The Bond offers two terms, three years and five years and a day, with interest linked to RPI (Retail Prices Index) plus a fixed amount of 0.24% per annum on the three year version and 0.98% per annum on the longer term account. RPI generally runs higher than CPI (Consumer Prices Index) and includes the cost of mortgage interest rates, in August RPI was 5.2% and has been rising consistently over the past year or so. Richard Norman, director of savings and investments at the Post Office, said: "Since we ...