Closing INDEX LINKED SAVINGS CERTIFICATE

polymaff

masonic wrote: »

Thanks, that would certainly remove the uncertainty. So this is another reason to prefer the shorter dated certs..

Oh, I wouldn't go that far - after all people do go back on their words!

The general trend though is away from the RPI - and away from commitment to commitments. I make that latter point with the recent change to FSCS in mind. I think that most investors in non-NS&I fixed rate, fixed period savings products considered the Government to be a third party to the contract. They've had a rude awakening. What is worse is that buried in the EU legislation is a mechanism whereby the Government *could* have underwritten the £85.000 figure for most pre-existing savings of this kind. I wrote to the Chancellor and got a "we know - but NO" reply. Now, the holders of these products are akin to the holders of NS&I ILSCs, which is why I earlier in this thread rejected the suggestion that the Government wouldn't dare offend that part of the community.