National Savings, Index Linked Savings Certificates

poppy10_2

kittie wrote: »

my certs have been calculated at being worth less than last month.

That's correct, the certs are linked to the RPI index, which has dropped significantly since last month.

Betelgeuse_2

Now that this month's RPI is only 0.1 one wonders about the wisdom of holding £10,000 in issue 14 three year certs (rpi + 1.15%) and £15,000 in issue 15 three year certs (rpi = 1.35%). The formula is fiendishly difficult to work out. Anyone hazard a guess as to whether to hold or fold?

fizzypop

Betelgeuse wrote: »

Now that this month's RPI is only 0.1 one wonders about the wisdom of holding £10,000 in issue 14 three year certs (rpi + 1.15%) and £15,000 in issue 15 three year certs (rpi = 1.35%). The formula is fiendishly difficult to work out. Anyone hazard a guess as to whether to hold or fold?

Many of us have the same problem. I suspect the RPI element will assume much greater significance a few months down the line and the additional interest of some 1% will be miniscule in comparison. This recession, despite the NuLab scaremongering about deflation, will be far longer and deeper than anyone can imagine. But there are no certainties. Read Liam Halligan and possibly Iain Martin in the DT for some useful insights into where this is all going.
So my recommendation is to sit on the fence, not sell your ILSCs and monitor what happens. I believe inflation and the RPI may take off like a rocket in six months if NuLab are still in power. Good Luck...we are all going to need it.

RayWolfe

fizzypop wrote: »

Read Liam Halligan and possibly Iain Martin in the DT for some useful insights into where this is all going.

Read Liam Halligan if you want to read unreconstructed neocon rants. A very measured man.