More than 500,000 savers over 65 will see their inflation-linked savings rates slashed by a third

This news may be a couple of weeks old but I have only just seen that NS&I have announced their inflation certificates will switch from being linked to RPI to the historically lower CPI, from May 2019.

It's worth remembering that the 5 Inflation linked Retail Bonds are all linked to RPI as are all current index linked Gilts.


  • Well, the change to CPI will only occur when the certificates come to the end of the 3 or 5 year period, so we do have some time to consider the alternatives. How to measure inflation has always been a problem, but the RPI was probably the best attempt. As far as I know, the CPI was introduced as a way of comparing rates across Europe by removing factors that were special to specific countries. So in the UK, the RPI is still used by investors to gauge their 'real' returns and is still used for student loans.
    PS I worked in France 25 years ago and even then they were joking about how their government used to fiddle the calculations to keep inflation low.
  • Bear in mind (as far as I understand it)-

    New certificates purchased prior to May next year will retain the link to RPI, meaning payouts will be protected until as far in the future as 2024.

    Someone with a three-year certificate maturing before May 2019 can swap it for a five-year certificate, maturity in 2024.
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