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 ...

Blow to best buy savings: NS&I cut their interest rates

National Savings & Investments (NS&I) has been forced to cut the interest rate on one of its most popular account after concerns were raised that it might breach its financing target. In a bid to maintain competition and fairness in the savings market, the Treasury set a net financing target for the amount of money NS&I can take in. For the year 2011/12 the target is £4 billion, however the latest forecast, released today, shows NS&I are likely to breach this figure by around £500 million. Security Over the past few years savers have flocked to NS&I as they look for a safe ...

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 ...

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 ...