NS&I to shaft savers again. RPI to CPI (index linked bonds)

C_Mababejive · 7 November 2018 at 11:14AM

Isnt it strange how HM Government via its agency the MS&I says that using RPI is outmoded and inaccurate and therefore they will switch inflation linking on its index linked bond product from RPI to CPI in 2019,,and yet when it comes to other things, they are quite happy to accept the status quo?

For example, student loan debt repayments, the annual rail fair increase for our national joke of a service, the interest payments on the free giveaway Help to buy loans etc..

Essentially,,anything involving income and charging.. Government is happy with RPI.

Anything involving expenditure- Oh no,we need CPI

Well why then dont they apply CPI to Government gilts ? Answer, because they are hypocrites, bullys and cowards and whilst they have no scruples or fear of ripping off savers and pensioners, they do fear upsetting their fat cat friends in the city and messing up the economy by applying the same rules to gilts.

Government is happy to squander taxpayer cash to help the profligate but they make the prudent pay for it i.e savers.

Examples of profligacy,,proposed free loans to help out those who got payday loans, free loans to buy shoddy over priced new homes from major housebuilders..witness the rising share prices of housebuilders propped up by Government policy and the latest scandal of the persimmon CEOs burgeoning pay bonuses.

The lesson to savers is,,dont bother,you are being mugged over. Spend spend spend and when you have no more, get some debt

System · 7 November 2018 at 11:26AM

Calm down and forget your conspiracy theories! The rates offered by NS&I are far more generous than the rates available on index-linked gilts, which is why NS&I index-linked bonds are not on general sale! You could always buy index-linked gilts if you think that they are a better deal.

nrsql · 7 November 2018 at 11:29AM

They could decide not to allow rollovers at all or give a negative interest rate.
These are still good products imho and closed to new investors. They could be accused of paying more interest than necessary to the detriment of the taxpayer.

I'm grateful they are still going at all. They just give the rate they need to keep the loans they predict they require.

C_Mababejive · 7 November 2018 at 11:44AM

Thats fine but why then do they charge in RPI but pay out in CPI? it shows that they are corrupt liars .

IanManc · 7 November 2018 at 11:52AM

The government are being hypocritical in keeping RPI as the inflation measure where they're charging interest or increasing the prices of things but changing to CPI when they are calculating increases for things they pay out on.

However, the terms and conditions for Savings Certificates have always allowed NS&I not to offer reinvestment of maturing certificates, and they could have stopped renewing them years ago in 2011 when they were withdrawn from general sale.

They would be really unfair if they were trying to change the inflation measure mid-term for certificates that are still running, but they're not doing that. RPI will be used for current certificates until they mature, and then at maturity we get the choice of renewing into new certificates linked to CPI, or taking the money.

When the change happens next May I will probably still renew my certificates which mature thereafter, because what is on offer is likely to be a better place for my money than anything else I can find at the time, especially bearing in mind that the interest and index linking are tax free.

I'm not delighted by the change from RPI to CPI, but it is my choice whether to reinvest in certificates linked to CPI, and they've given plenty of notice of the change.

Zanderman · 7 November 2018 at 12:41PM

C_Mababejive wrote: »

Thats fine but why then do they charge in RPI but pay out in CPI? it shows that they are corrupt liars .

No it doesn't.

made2fade · 7 November 2018 at 2:00PM

And lets not forget that MPs pensions are still indexed to RPI despite them changing Public sector pensions to CPI. Hypocritical? Self evidently.

System · 7 November 2018 at 2:09PM

made2fade wrote: »

And lets not forget that MPs pensions are still indexed to RPI despite them changing Public sector pensions to CPI. Hypocritical? Self evidently.

Do you have some evidence for this assertion?

ColdIron · 7 November 2018 at 5:25PM

made2fade wrote: »

And lets not forget that MPs pensions are still indexed to RPI despite them changing Public sector pensions to CPI. Hypocritical? Self evidently.

Untrue? Self evidently.

They might be responsible for tinkering with our retirement savings but MPs benefit from one of the most generous pension schemes out there. Although a new career average revalued earnings (CARE) scheme was introduced in 2015, they still receive 1/51st of their annual pensionable earnings for each year that they in the scheme, revalued each year by the Consumer Price Index (CPI), in exchange for an annual contribution of 11.09%.

https://www.moneywise.co.uk/pensions/retirement-lifestyle/top-10-jobs-pensions

foxy-stoat · 7 November 2018 at 5:57PM

I would take the main man's advice and cash in all your premium bonds......it will give me and the others a better chance to win more than £25 !!!

le_loup · 7 November 2018 at 6:03PM

They pay RPI for state pensions.

Shouldn't but they do.

NS&I to shaft savers again. RPI to CPI (index linked bonds)

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