NS&I Index linked bonds change

nicko33

isofa wrote: »

Still not as good as the RPI+1.35% issues (15 and 42) available last year...

No, but I can't buy any (more) of those, but I am tempted by this new issue.

isofa

nicko33 wrote: »

No, but I can't buy any (more) of those, but I am tempted by this new issue.

That's true, I was just showing that they have been higher before. And with rates and inflation like they are, I think 1% is a poor offering at the moment, but still good if you are a higher rate tax payer.

I bet later this year they'll offer something better.

Milarky

These products only look any good because they are 'tax free' [5.3% 'net']. More power to Leeds BS for offering an RPI-linked ISA offering RPI + 2.5%

Perhaps if other got in on the inflation-linked game (with ISAs) HMG would have to pay a bit more...

nrsql

Dang - looks like I'll be cashing in the one I took out a couple of weeks ago and re-investing. Was only for a small amount as I wasn't too happy with the rate.
At least I'll find out how to do it.

Old_Slaphead

Dang also - I only invested in some yesterday afternoon!!!

Jonbvn

Milarky wrote: »

These products only look any good because they are 'tax free' [5.3% 'net']. More power to Leeds BS for offering an RPI-linked ISA offering RPI + 2.5%

Perhaps if other got in on the inflation-linked game (with ISAs) HMG would have to pay a bit more...

Index linked savings certs are really not comparable to cash ISA's, when you consider how much you can invest in them (30k). IMHO, these index linked certs are much more comparable to fixed rate savings. For a basic rate tax-payer, these certs offer 5.3/0.8 = 6.625% whereas a lot of the FR savings are offering around 7%.

Of course these certs are a no-brainer for a HR tax-payer.

nrsql

Also depends on what you think will happen to RPI and the BoE rate (or savings rates as things don't seem to be so linked any more).

martinman3

Jonbvn wrote: »

For a basic rate tax-payer, these certs offer 5.3/0.8 = 6.625% whereas a lot of the FR savings are offering around 7%.

It is important to note that the figure of 5.3% is what the current issue would have returned in a year if purchased 12 months ago (if it had been available then).

If one believes that the RPI is increasing faster now than it was 12 months ago the return on certs bought today will be higher than that figure.