NS&I saver question

kar999

I know who I'd rather take financial advice from....... Mervyn King

I can't see sustained deflation being on the cards in the next 12 months and there is a get out with these certs anyway.

Reaper

It wouldn't matter even if there was deflation. Even 0% would be a good rate during deflation becuase it means your savings are effectively going up in value because the price of stuff you can buy with it is going down.

Getting 0.25% or 0.5% is even better.

The only time these would not be so good if is inflation is low and interest rates are high. Not very likely the way things are going and even if it happens you still won't lose out, you just won't make as much as you could have. And you can always cash them in early after a year for only small penalty.

noh

kar999 wrote: »

I know who I'd rather take financial advice from....... Mervyn King

I can't see sustained deflation being on the cards in the next 12 months and there is a get out with these certs anyway.

Here is what he had to say.

http://www.thisislondon.co.uk/standard/article-23948955-inflation-will-soar-above-five-per-cent-this-year-says-bank-chief.do