NS&I rate of return on new issue

arthurtwosheds

Am I missing the point here? The rate of inerest on the new NS&I issue is stated as the difference in RPI plus a yearly bonus. If the current RPI rate is say 5% and increases to 5.5% then the rate of return would be this difference plus any bonus and not the total RPI plus bonus. Not as good a deal as it would first appear. Can anyone enlighten me please?

lisyloo

RPI is not the same as the RPI rate and I think you are mixing these up.

So 2009 RPI was 213.7, 2010 RPI was 223.6
giving an RPI rate of 4.63%

In this case the rate of return would be 4.63 + the additional bonus.

So yes it is as a good a deal as it first appear.
It's the difference in RPI or the RPI rate that counts.
NOT the difference in the RPI rate.

whu

lisyloo wrote: »

RPI is not the same as the RPI rate and I think you are mixing these up.

So 2009 RPI was 213.7, 2010 RPI was 223.6
giving an RPI rate of 4.63%

In this case the rate of return would be 4.63 + the additional bonus.

So yes it is as a good a deal as it first appear.
It's the difference in RPI or the RPI rate that counts.
NOT the difference in the RPI rate.

Exactly and the figures to be compared are those 2 months prior to the month you take out your certificate