Is now the time to buy index linked saving certificates

D1zzy

I was having a chat with someone who has decided that the time is about right to buy heavily. His reasoning is ....
1) We are about 12 months on from the price falls which caused the RPI to drop - so those will fall out of the loop
2) Retail Prices are beginning to rise
3) Oil prices are rising
4) Inflation is bound to start rising in the not too distant as whichever government tries to deal with the "credit crunch debt".

Have some fixed rate savings maturing in October - so I will need to find a good home for them - what do you think?

yelf

Well, the Treasury recently moved a large holding of its own pension fund in index-linked certificates.

Biggles

There have been discussions on whether it's the 'right time' for some while on here.

I bought heavily, one tranche in March and one in April, and the RPI has been rising steadily since then. But I think the time is still right.

soulsaver

What does 'heavily' mean? How many issues can you buy currently?

trenchwars

Only one issue is available at any one time. You can invest up to £15k per issue. Once you reach that limit you have to wait for the next issue. They normally do a couple each year.

amcluesent

>what do you think?<

Letting inflation rise quite a way is (secret) govt. policy to diminish the public sector debt.

JoeCrystal

Well, I am great believer in the idea that one should always try to hedge against inflation. In my case, that is buying Index-linked Savings Certificates every month.

RayWolfe

That is what I do. Time will tell if it is wise, but it can't possibly do any harm if mixed with other savings and investments.

ManAtHome

Me too - last year's interest rate cuts will start dropping out later this year, and VAT goes back up in January as well as all the other stuff.

Biggles

trenchwars wrote: »

Only one issue is available at any one time. You can invest up to £15k per issue. Once you reach that limit you have to wait for the next issue. They normally do a couple each year.

There are normally two available at any time, one being a 3-year and one a 5-year certificate; you can put up to £15,000 in each issue.

trenchwars

Biggles wrote: »

There are normally two available at any time, one being a 3-year and one a 5-year certificate; you can put up to £15,000 in each issue.

Ah yes you're right - I didn't realise they were treated as separate issues.