Index-linked Savings Certificates

starkj

How good are they?

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

tradetime

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.

Reestit_Mutton

...and equivalent to almost 10% presently for a higher rate tax-payer.

RM

Jonbvn

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.