Index Linked Savings Certificates

galent

What Do You Think Of National Savings Index Linked 3 And 5 Year Certificates, For Standard Or Higher Rate Tax Payers? (i Know That They Are Probably Not The Best Way To Save If You Are A Non Tax Payer).

baby_boomer

Good for higher rate taxpayers = 5.75% tax free on June's 4.4% inflation figures = almost 9.6% gross.

Not bad but a bit inflexible for basic rate taxpayers = 7.2% gross.

It depends on your views about inflation. Is it back to stay? My own view is that it probably is, even if it falls back from recent "high" levels.

isofa

I suggest you read this thread galent:

http://forums.moneysavingexpert.com/showthread.html?t=528781

Recently covered by a few of us in some detail, should answer some of your questions!

(Could this be made a sticky Admins? Similar questions are posted frequently.)

galent

thanks for that.

poppy10_2

baby_boomer wrote: »

Good for higher rate taxpayers = 5.75% tax free on June's 4.4% inflation figures = almost 9.6% gross.

It depends on your views about inflation. Is it back to stay? My own view is that it probably is, even if it falls back from recent "high" levels.

July's inflation rate was even lower at only 3.8%, and most analysts expect it fall further this month. Not looking like such a good investment now.

StevieJ

poppy10 wrote: »

July's inflation rate was even lower at only 3.8%, and most analysts expect it fall further this month. Not looking like such a good investment now.

Oh great inflation tamed so no more interest rate increases.

ManAtHome

Anyone else a bit suspicious about July RPI - last July was just before interest rates started going up and house prices have increased around 10% since, so presumably all other costs have remained static or dropped.. Or maybe the RPI "average mortgage" is still around £50k..?