We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Index-linked Savings Certificates

How good are they?

Can they be easily beaten by moving cash between the top payers?

Comments

  • tradetime
    tradetime Posts: 3,200 Forumite
    If it's the NS&I ones then they are linked to the RPI which is currently at about 4% + the 1.35% bonus all of which is tax free so all in all worth about 6.85% equivalent of a normally taxed savings account, of course the RPI is variable, I think calculated on a yoy basis.
    Hope for the best.....Plan for the worst!

    "Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown
  • ...and equivalent to almost 10% presently for a higher rate tax-payer.

    RM
    For anyone wishing to contact me privately to ask me a question, can I ask that you email me directly as my PM box is often full.
  • Jonbvn
    Jonbvn Posts: 5,562 Forumite
    Part of the Furniture 1,000 Posts
    Given the general trend of falling interest rates expected this year, coupled with likely higher inflation, ILSC's look pretty good to me. Only downside is that you have to keep them for at least one year to get a return.

    Given the above, and uncertain times ahead, they should form some component of most peoples portfolio.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.6K Banking & Borrowing
  • 254.2K Reduce Debt & Boost Income
  • 455.1K Spending & Discounts
  • 246.7K Work, Benefits & Business
  • 603.1K Mortgages, Homes & Bills
  • 178.1K Life & Family
  • 260.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.