Savings: No quick return for NS&I Index Linked Certificates

Savings: No quick return for NS&I Index Linked CertificatesNational Savings & Investments (NS&I) have confirmed that their Index Linked Certificates are “highly unlikely” to be returning this year. On the same day that CPI (Consumer Prices Index) inflation surprisingly rose this news will come as a blow to savers struggling to get a real, above inflation, return on their savings. Inflation linked savings accounts NS&I Index Linked Certificates provide a guaranteed return above inflation, measured by RPI (Retail Prices Index), with the ...

Is now the right time to link your savings to inflation?

Savers are still putting millions of pounds into inflation linked savings accounts, but with last month’s fall in the rate of inflation and predictions from the Bank of England that it will fall further, possibly below their 2% target, is now the time to link your savings to inflation? The inflation problem We all know what a toxic combination high inflation and low interest rates can be. Last month the Consumer Prices Index (CPI) stood at 5%, down 0.2% on the previous month, RPI (Retail Prices index) fell by the same amount to 5.4%. Searching the best savings interest rates  shows the simple ...

Inflation linked savings accounts: should you believe the hype?

For the past 12 months or so savers have been caught in a perfect storm; inflation has been rising steeply and interest rates continue to run at all time lows. So where have savers turned to for a real above inflation return? The answer until the middle of last year was often NS&I (National Savings & Investments) Index Linked Bonds. These provided a return of 1% above RPI, came with three and five year terms, could be surrendered easily and to top it all the interest was tax free. Even the relatively low £15,000 subscription limit could not diminish the value to ...