Index Linking For Dummies...

Joey122

I have to say that I did not know about this until today :-(

From what I ve read you can invest 15K in each 'issue' at 1% + RPI tax free - This makes tpdays RPI rate 5.4%

Question: When has RPI ever been less then 3% over the last decade? My hunch is never - If that is the case then these certificates would have been the best to hold

Question: Where can I see historic rates for issues? Is 1% + RPI pretty good? Has it been higher or lower in the past and if so when?

RayWolfe

Try searching here. You'll find answers to all your questions.

Lokolo

http://www.statistics.gov.uk/StatBase/tsdataset.asp?vlnk=229&More=N&All=Y

RPI is the second column. The data there is monthly ever since they started recording.

Joey122

Lokolo wrote: »

http://www.statistics.gov.uk/StatBase/tsdataset.asp?vlnk=229&More=N&All=Y

RPI is the second column. The data there is monthly ever since they started recording.

Thanks - My question was arounf the 1% part. How can I see whether the 1% part of the NSI has changed over the last few years...

See what I mean?

Lokolo

Joey122 wrote: »

Thanks - My question was arounf the 1% part. How can I see whether the 1% part of the NSI has changed over the last few years...

See what I mean?

I knew what you meant, that reply was in response to your "RPI has never been under 3%" comment. Was just to show otherwise!

I don't know where to find previous rates on Index Linked Certs though!

dunstonh

From what I ve read you can invest 15K in each 'issue' at 1% + RPI tax free - This makes tpdays RPI rate 5.4%

It actually makes those that had certs from a year ago 5.4%. Last year was seen as a good year for offering good potential for index linked certs because events were going to happen that would almost certainly push inflation up. Whether next year or the year after will be as good only time will tell but they wont benefit from from the same set of events.

index linked certs do act as a good hedge against inflation and a way to at least give you some inflation proofing on your cash savings (which at the moment are potentially failing to keep up with inflation)

DiggerUK

Joey122 wrote: »

......Question: Where can I see historic rates for issues? Is 1% + RPI pretty good? Has it been higher or lower in the past and if so when?

3 Year Issues
7 April 2010 20th Issue RPI + 1.00%
29April 2009 19th Issue RPI + 1.00%
18 June 2008 18th Issue RPI + 1.00%
21 May 2008 17th Issue RPI + 0.70%
02 April 2008 16th Issue RPI + 0.25%
25 April 2007 15th Issue RPI + 1.35%
26 October 2006 14th Issue RPI + 1.15%
20 May 2006 13th Issue RPI + 1.05%
13 April 2006 12th Issue RPI + 0.90%


5 Year Issues
7 April 2010 47th Issue RPI + 1.00%
29 April 2009 46th Issue RPI + 1.00%
18 June 2008 45th Issue RPI + 1.00%
21 May 2008 44th Issue RPI + 0.70%
02 April 2008 43rd Issue RPI + 0.35%
25 April 2007 42nd Issue RPI + 1.35%
20 May 2006 41st Issue RPI + 1.15%
13 April 2006 40th Issue RPI + 0.95%

sabretoothtigger

dunstonh wrote: »

It actually makes those that had certs from a year ago 5.4%.

Good point, I was just thinking the same though I dont own these so Im not 100% sure.


Taking it up now and expect to get 5% this time next year would I think require rpi to register as 8% by March 2011

Most people would say this is impossible or very unlikely. It'd be out of the norm for recent times definitely but alot of things are



See here is the reversal and why its giving 5% right now. You need that difference between the years to continue

Joey122

sabretoothtigger wrote: »

Taking it up now and expect to get 5% this time next year would I think require rpi to register as 7% by March 2011

Eh??? What do you mean by that

Lokolo

Joey122 wrote: »

Eh??? What do you mean by that

He thinks RPI is going to continue to rise over the next 12 months.

Presumably he doesn't see base rate changing anytime soon.

DiggerUK

Joey 122,
Bit more info. Put link in favourites. Has formula explained.

http://www.telegraph.co.uk/finance/p...ngs-QandA.html