NS&I Anticipated Rate Increase

fizzypop

If Darling is looking for an additional £90billion next year to fund the government's deficit then NS&I RPI+1% is looking paltry. Anyone considering the Index Linked Savings 3Yr or 5Yr should simply wait. What's the bet that the previous rate of RPI+1.35% will be greatly improved?

opinions4u

I'm sure the Government will raise it's extra money wholesale, not retail lol

StevieJ

fizzypop wrote: »

If Darling is looking for an additional £90billion next year to fund the government's deficit then NS&I RPI+1% is looking paltry. Anyone considering the Index Linked Savings 3Yr or 5Yr should simply wait. What's the bet that the previous rate of RPI+1.35% will be greatly improved?

Even when BR is reduced to 3%.

cheerfulcat

opinions4u wrote: »

I'm sure the Government will raise it's extra money wholesale, not retail lol

Not at all, it raises money where it can!

fizzypop,

What's the bet that the previous rate of RPI+1.35% will be greatly improved?

The rates for the index linked certificates are directly related to the rates for index-linked gilts.

alanq

5-year fixed rate Saving Certificates' rate has just been reduced to under 3% (tax free). The RPI growth rate is currently around 5% so RPI + 1% looks pretty good by comparison. If anything I expect the rate for Indexed certificates to go down.

s100_2

so whats the consensus, to buy this issue or wait for the next?

IGK

s100 wrote: »

so whats the consensus, to buy this issue or wait for the next?

I'd buy this issue, then wait for the next one and buy that too
Seriously (although I do mean what I say above), I think 1% + RPI tax free, 100% guaranteed, with easy access if needed (albeit with loss of interest) is a pretty good deal. Even if RPI falls (which it's expected to do) it's not bad.