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 ...