NSI Index Linked Certificates

[Bill Ward]

Savers about to renew their certificates for three years are being
offered RPI * 0.01%.
Without a crystal ball how can anyone contemplate them?
Bill.

[Optimist]

Post by Bill Ward
Savers about to renew their certificates for three years are being
offered RPI * 0.01%.
Without a crystal ball how can anyone contemplate them?
Bill.

RPI or CPI?

[Norman Wells]

Post by Optimist

Post by Bill Ward
Savers about to renew their certificates for three years are being
offered RPI * 0.01%.
Without a crystal ball how can anyone contemplate them?
Bill.

RPI or CPI?

It's RPI and it's '+' 0.01% not '*'. It makes a difference.

The Bank of England forecasts CPI inflation to be running at 1.9% this time next
year and at 2.4% in the following two years. RPI has always been higher than CPI by
maybe by as much as 1%.

To keep the purchasing power of your savings, you need to make, after any tax, at
least the value of your own personal inflation rate, which depends on the sort of
things you buy and pay for. That may be lower or higher than CPI or RPI.

You won't be able to save safely at anything over 2% currently elswhere, even on a
term bond.

[Bill Ward]

Post by Norman Wells

Post by Optimist

Post by Bill Ward
Savers about to renew their certificates for three years are being
offered RPI * 0.01%.
Without a crystal ball how can anyone contemplate them?
Bill.

RPI or CPI?

It's RPI and it's '+' 0.01% not '*'. It makes a difference.

Sorry finger problem.

Post by Norman Wells
The Bank of England forecasts CPI inflation to be running at 1.9% this
time next year and at 2.4% in the following two years. RPI has always
been higher than CPI by maybe by as much as 1%.

What were the RPI figures for the past two years?

Post by Norman Wells
To keep the purchasing power of your savings, you need to make, after
any tax, at least the value of your own personal inflation rate, which
depends on the sort of things you buy and pay for. That may be lower or
higher than CPI or RPI.
You won't be able to save safely at anything over 2% currently elswhere,
even on a term bond.
-

Bill.

[Bill Ward]

Post by Optimist

Post by Bill Ward
Savers about to renew their certificates for three years are being
offered RPI * 0.01%.
Without a crystal ball how can anyone contemplate them?
Bill.

RPI or CPI?

RPI.

[RobertL]

Post by Bill Ward
Savers about to renew their certificates for three years are being
offered RPI * 0.01%.
Without a crystal ball how can anyone contemplate them?

I have quite a lot of them and consider them a valuable asset. You can't buy them any more; you can only renew the ones you've already got.

Unlike index linked gilts, the capital value of savings certificates does not fluctuate.

Also they aren't taxed.

And it is the RPI they are linked to, not the CPI.

Robert

[Bill Ward]

Post by RobertL

Post by Bill Ward
Savers about to renew their certificates for three years are being
offered RPI * 0.01%.
Without a crystal ball how can anyone contemplate them?

I have quite a lot of them and consider them a valuable asset. You can't buy them any more; you can only renew the ones you've already got.
Unlike index linked gilts, the capital value of savings certificates does not fluctuate.
Also they aren't taxed.
And it is the RPI they are linked to, not the CPI.
Robert

Looking at our ones each £10K invested and reinvested for three year
periods since November 2007 is now worth £13,821.
In theory post BREXIt the RPI will go up on the other hand being 82 I'm
trying to avoid long term investments and live for the moment:-)
Bill.

[Tim Woodall]

Post by Bill Ward

Post by RobertL

Post by Bill Ward
Savers about to renew their certificates for three years are being
offered RPI * 0.01%.
Without a crystal ball how can anyone contemplate them?

I have quite a lot of them and consider them a valuable asset. You can't buy them any more; you can only renew the ones you've already got.
Unlike index linked gilts, the capital value of savings certificates does not fluctuate.
Also they aren't taxed.
And it is the RPI they are linked to, not the CPI.
Robert

Looking at our ones each £10K invested and reinvested for three year
periods since November 2007 is now worth £13,821.
In theory post BREXIt the RPI will go up on the other hand being 82 I'm
trying to avoid long term investments and live for the moment:-)
Bill.

The only conundrum I had recently was whether to renew my 5 year certs
for 3 years. If interest rates start going up to combat inflation then
it might be beneficial to have an earlier renewal date.

But in the end I decided to do nothing and let them renew for 5 years.

I wish you could still buy them, even at 0.01% + RPI.

Tim.

[Bill Ward]

Post by Tim Woodall

Post by Bill Ward

Post by RobertL

Post by Bill Ward
Savers about to renew their certificates for three years are being
offered RPI * 0.01%.
Without a crystal ball how can anyone contemplate them?

I have quite a lot of them and consider them a valuable asset. You can't buy them any more; you can only renew the ones you've already got.
Unlike index linked gilts, the capital value of savings certificates does not fluctuate.
Also they aren't taxed.
And it is the RPI they are linked to, not the CPI.
Robert

Looking at our ones each £10K invested and reinvested for three year
periods since November 2007 is now worth £13,821.
In theory post BREXIt the RPI will go up on the other hand being 82 I'm
trying to avoid long term investments and live for the moment:-)
Bill.

The only conundrum I had recently was whether to renew my 5 year certs
for 3 years. If interest rates start going up to combat inflation then
it might be beneficial to have an earlier renewal date.
But in the end I decided to do nothing and let them renew for 5 years.
I wish you could still buy them, even at 0.01% + RPI.
Tim.

There is a suggestion that Pensioner Bonds may be brought back in the
Autumn statement.... if you qualify.