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 ...