Bit of a novice when it comes to savings as only recently paid off student loans etc!

Wife and I have used our ISA allowances for the last few years and we now have about £16K in a savings account (7.2 of which we are earmarking for next year's ISA). Any gains seem to be being eroded by Gordon and Darling as well as inflation.

Not sure what to do now - the index linked savings seem to be one suggestion, but as far as I can tell RPI is going to fall in the not too distant. What do people think of these or are there any other suggestions?

Thanks in advance

Why do you think that RPI is to go down?
Even if oil prices fall in the short term it will take quite a while for higher costs to feed to the highstreet.
inflation will remain the principle economic worry for the next 4 years for everyone inc europe and the far east.
Indeed Inflation in china and the places we import from the most are rising alarmingly.
Fuel and gas in the uk is 90% imported from places like Russia.......who knows what will happen to prices in a local war situation.

I am happy to have a large holding of these for 3 reasons:
1 SAFETY OF PRINCIPLE
2 ASSURANCE TO BETTER INFLATION......whatever RPI actually is..
3 SEE (1)

in short the best and safest savings home you will find....the current issue is a good buy.

I will be buying more when my HBOS isas are available later his year......

Thanks for your reply

I do see your point re safety and guarantee of beating RPI.

I was having a look around the RPI forecasts and saw the following:

http://www.lloydstsbcorporatemarkets.com/m..._15_07_2008.pdf

I suppose even if it goes as low as they suggest, for the upper tax band it still makes it worthwhile.

So what product from NS&I would be best to invest in to get best returns.

not looking to tie my cash up for more than a year if possible.