courtenay62

courtenay62

Hi,

I invested in NS&I Index Linked Saving Certificates a few months ago, paying current RPI plus 1%

The RPI today is 0.9, and going down steeply. Anyone know what happens to the interest paid if the RPI goes below zero, or even below -1% ?

Thanks.

JimLad

no idea to be honest! prolly just stops at 0 but you might want to change your post topic to something more desciptive. Its your name currently

Lansdowne

Certificates are worth only the purchase value until the first year is up. At that point, if inflation has been 0 or -ve, the value will go up by the percentage advertised at the time, probably about 0.9%.

There is a discussion on another thread today, but be warned there's a lot of maths on it.

Agree about the title of your post.

dunstonh

Anyone know what happens to the interest paid if the RPI goes below zero, or even below -1% ?

It cannot go below zero. So, you cant lose money.

NS&I IL Certs still are good value. Despite inflation likely to be a near zero this year, the inflation plus 1% is a good rate for the years that are to follow when inflation starts to go back up again. A lot of the things the Govt are doing create inflation. If and when they start to work, inflation will probably begin to rise. When fuel starts going back up, inflation will rise. So, a short term blip is no reason to change out of these.