Hello,

Does anyone know if there are any Instant access index linked saving accounts? I have been looking the only index lined account I can find is NSANDI but it is fixed for either 3 or 5 years, does that mean I can't withdraw my money without losing insterest?

many thanks and sorry if this is a silly question, just that I have STR and am very worried about inflation eroding my savings

thanks again.

A good question. I'd like to hear if anyone know of any index-linked savings accounts without tying up the money, too.

To address your NS&I question, with their Index-linked Certificates, interest is calculated month by month throughout the term, based, each month, upon the current RPI figure (published on the National Statistics website -- I was going to try to provide a link to the appropriate page, but their website seems to be having trouble -- maybe because Feb's CPI and RPI figures are due to be published today).

To discourage you from withdrawing early, if you withdraw your money within the first year, you will receive no interest (but you'll get all of your original investment back). After the first year, you will receive any interest accrued up to the point of withdrawal, but they increase the interest each year to encourage you to go the distance.

From memory (for the three-year one) during the first year, the interest rate is RPI + 1.1%; the second year is RPI + 1.3%; and the third year is RPI + 1.66%.

EDIT: The interest rates are for (as far as I know) the latest issue of the three-year Certificate. In theory, they could release a new issue (although they don't seem to be releasing new issues nearly as often as they used to), in which case, the 'bonus' rate of interest above the RPI could change.

Ahh I think I understand, so with the fixed 3year deal you can withdraw and recieve your interest + 1.1 % RPI?

that sounds pretty good especially if inflation kicks in massively.

Would a crash in the pound or a devalutation cause inflation?

As long as you don't withdraw within the first twelve months, you will receive all interest earned up to the point of withdrawal, which, in the case of immediately withdrawing when the initial twelve months is up, would be at RPI + 1.1% (which, now that the figure has been published, for February would've been at 5.2%). This is a tax-free investment, so, for lower-rate tax payers, 5.2% is equivalent to 6.5%.



Well, I'm no economist, but isn't a devaluation of the pound practically a definition of inflation?

Pound tanks, things we import get more expensive - which is just about everything - whichis inflation. I think the problem though is that we will end up paying more for day to day living such as fuel and food but the banks will keep savings IRs low.