Inflation Linked Savings discussion area

kidmugsy

Reactor, no-one knows: until it's announced and then we'll all hear PDQ. There's no guarantee that there will be an issue.

ic451uk

Looks like it won't be before May 2013 at the earliest, sorry.

http://www.telegraph.co.uk/finance/personalfinance/savings/9209004/Highly-unlikely-NSandI-will-bring-back-inflation-linked-savings-certificates.html

wendywoo4u

Hmm to cash in NS&I 5 year saving cert taken out last year or hold on to it (no penalties for withdrawing after a year and a day) as RPI is falling? Any suggestions peeps or perhaps moneysavignexpert could give some advice to holders?

alanq

Where did you learn the RPI was falling? (it has done so for a couple of individual months over the past year but not over any 12-month period) Or do you mean that the annual RATE OF CHANGE OF RPI is falling?

ILSCs increase in value if RPI increases even if the RATE OF CHANGE OF RPI does fall.

kar999

Hold onto them is my view.. I dont have a crystal ball but suspect that the fall in rate of inflation will remain slower than the BoE would like. These NSI's are tax free as well which gives them a head start compared with other non-ISA savings.

kar999

Just been reading some of the forecasts for inflation and had forgotten about the housing costs that affect the differnce between CPI and RPI ....

Despite low broad money supply growth and a weak economy, we will probably be lucky to get below 3% at the CPI level and RPI will inevitably be higher, especially since mortgage rates seem to be on the way up.

kar999

Todays Inflation report from Meryn King said the rate of inflation will remain above the government's 2% target "for the next year or so".

The MPC has a history over many years of underestimating inflationary pressure so I'd take it that inflation will higher for much longer and hence make these IL certs worth holding onto.

Full report here: http://www.bankofengland.co.uk/publications/Documents/inflationreport/ir12may5.pdf

stec00

Has the Santander Inflation Linked Savings Bond been withdrawn? The link in the article isn't currently working:

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&cid=1237899884484&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_ViewSelector

Reaper

stec00 wrote: »

Has the Santander Inflation Linked Savings Bond been withdrawn? The link in the article isn't currently working:

From the article:

You can only apply in branches until 5 November 2012

southdownspecial

I have a certificate maturing in April and NS&I are offering a 3 or 5 year certificate giving index linking + 0.15%. I know this is no where near as good as the one maturing but as all saving %s are rubbish does anyone know if this would still be a good option , Maybe for 3 years.