Pensions: Why yesterday’s inflation ‘non announcement’ shouldn’t hide the real issues

Pensions Why yesterday’s inflation ‘ non announcement’ shouldn’t hide the real issues facing retireesIt had been thought that a relatively obscure announcement yesterday, on changes to how the Retail Prices Index (RPI) was calculated, would heap further financial pain on savers and retirees. Along with the Consumer Price Index (CPI), RPI is one of the main two measures of inflation in the UK. It had been thought that a much anticipated announcement yesterday morning would change the way ...

Warning over NS&I Index Linked Certificates

Despite only being re introduced in May National Savings & Investments (NS&I) has issued a warning over excess demand for these popular savings products. NS&I has said that it will need to monitor ‘pent up demand’ for the Index Linked Certificates, which have been popular amongst savers. The certificates provide a tax free return which is guaranteed to be above inflation. Despite the £15,000 cap on how much each saver can invest per issue the products have been popular as savers try and combat the twin effects of low interest rates and high inflation. NS&I put the Index Linked ...

8 tips to help make your savings work harder

In these times of low interest rates and rising inflation it has never been more important to get your savings working as hard as possible for you. We have put together eight simple tips to help your savings do just that. 1. Minimise tax Paying less tax will mean you get a better return from your savings, but not everyone’s savings are as tax efficient as they possibly can be. Start by using your Cash ISA allowance (£5,340 in the current tax year) the interest paid on a Cash ISA is not taxed, making them an attractive starting point for most savers. Next, think about ...

Post Office launches new inflation linked savings account

The Post Office has launched a new inflation linked savings bond designed to compete with the Index Linked Certificates issued by their former partner, National Savings & Investments (NS&I). The new account can be opened for a three or five year term. It pays interest of 1.5% over RPI (Retail Price Index) for the five year term and 0.5% over RPI for the three year term. Although the headline rate on the five year account is higher than the NS&I Index Linked Certificates it is subject to tax, meaning that taxpayers would be better off with the NS&I account. Unlike the NS&I Index ...