Post Office launches new issue of inflation-linked bonds

by Simon Ward on 19 January 2012  |  3 comments
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Popular inflation-beating savings products get a fourth issue.

The Post Office has launched its fourth issue of its fixed-term inflation-linked bonds today. Past issues of the bonds have been oversubscribed as people look for places to put their money to shield it from the effects of inflation.

There are two bonds to choose from with different terms and interest rates. There’s a three-year bond, which offers the annual Retail Prices Index (RPI) of inflation plus 0.25% gross interest. Or there’s a five-year bond that pays RPI plus 0.5% gross interest.

The RPI inflation measure paid out on the bonds is taken from the March RPI figure each year. At the moment, no other fixed-rate bond is beating RPI inflation.

The deadline for applications is 29 March but every issue of the bonds so far has been withdrawn before the closing date. The fixed terms begin on 27 April.

You need to apply by post. You can either go to www.postoffice.co.uk/savings or call 0800 169 7500 to get hold of an application pack.

It was confirmed this week that inflation fell sharply last month, as highlighted in Inflation falls in December. Despite this fall, it's still incredibly difficult for savers to find an inflation-beating deal.

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