Index Linked Certificates Cut
Published / Last Updated on 18/07/2010
by Ashley Clark, Director
Inflation protected index linked certificates have been taken off the market by “government” bank National Savings and Investments (NS&I) with effect from midnight last night.
Inflation risk is very quite high on most people’s agenda, NS&I claim that due to demand, their index linked certificates have had to be withdrawn. They suggest it is to do with competition laws, where NS&I are not allowed to take too greater market share.
We also suggest, NS&I (and by that we mean government) has concerns that these type of investments may provide the government will an unmanageable liability in a few years time when inflation starts to bite back and increase. We have already made predictions of double digit inflation in a couple of years.
Why do you think most recently in the budget many benefist had their increases linked to RPI removed and changed to the lower inrlation benchmark of CPI (Consumer Prices Inflation).
Index linked certificates are linked to Retail prices inflation (RPI) which was up to 5%pa in May and we suggest more of the same to come.
Post office and online applications for index linked certificates were suspended with effect Midnight last night with no notice. All applications that were not with NS&I offices by yesterday will be returned.
Useful links:
Contact us - Book Callback - Free Consultation - Newsletter - Money MOT - Discounts
