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i purchased a £15000 index linked savings certificate in June 2011 which i can now cash if required and am looking for advise whether to cash eto

ianburnley
by ianburnley 25 July 2012  |  Comments 2 comments  |  Love Love  0 loves

in or stick bearing in mind recent inflation falls and forecasts

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Comments (2)

  • MikeGG1
    Love rating 879
    MikeGG1 posted

    If you are a higher rate taxpayer, it is unlikely that you will lose out by sticking with it because they are tax-free and there is an increasing bonus on top of RPI. RPI is also normally higher than CPI which is targetted to be 2%.

    If you are a standard rate taxpayer, you will probably be better off sticking with it.

    If you are non-taxpayer, you will probably be better to switch to a top paying 1 or 2 year bond, but not by very much.

    But I could be wrong. Guessing next year's inflation figure is impossible for us mortals.

    Mike

    Posted on 25 July 2012 | Love Love  0 loves Report
  • CaptainFlak
    Love rating 32
    CaptainFlak posted

    I'm keeping mine, but they are part of a diverse set of investments, I think the chance of inflation staying lower than the miserable rates on offer after tax is taken in to account means they are a solid choice for some money to be kept in. If you are a non tax payer then it is a closer call.

    Posted on 06 August 2012 | Love Love  0 loves Report

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