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Adviser Centre

How can we help?

  • What is the difference between RPI and CPI (the indexes used for Index-linked Savings Certificates)?

    Both the Consumer Prices Index (CPI) and the Retail Prices Index (RPI) measure inflation. Each aims to measure the changes in the cost of buying a 'basket' of products and services, but they cover different items and there are differences in the formulas used.

    To find out more about CPI and RPI, visit the Office for National Statistics website at ons.gov.uk and search CPI All Items Index or RPI All Items Index.

    ons.gov.uk

  • How will the change on Index-linked Savings Certificates from RPI to CPI affect my clients?

    Your clients will continue to receive 0.01% interest in addition to the index-linking. Here is an illustration of what your clients could expect to receive from a £1,000 investment based on the current RPI index, and what the return could be based on CPI.

    TermRPI (using September 2018 rate of 3.3%)CPI (using September 2018 rate of 2.4%)
    2-year Index-linked Savings Certificate £1,067.29 £1,048.78
    3 year Index-linked Savings Certificate £1,102.62£1,074.05
    5-year Index-linked Savings Certificate £1,176.82£1,126.45

    These are illustrations only, so they don’t take into account your clients’ individual circumstances. They assume that your clients don't make any withdrawals during the term.

    The rates of inflation can go up or down so the illustrations are not a guarantee of the return your clients will receive. The actual return your clients receive will depend on the levels of the relevant index that apply at the start and end of each investment year.

  • Why is NS&I changing the index on Index-linked Savings Certificates from RPI to CPI?

    In 2013, as a result of flaws in the way it is measured, RPI lost its status as a National Statistic. The 2015 Johnson Review of Consumer Price Statistics recommended that government and regulators should work towards ending the use of RPI as soon as practicable. Starting in 2010, successive governments have reduced their use of RPI. The indexation of direct taxes, benefits, public sector pensions, the State Pension and business rates have all moved from RPI to CPI.

    The change also helps us to balance the interests of our savers and the cost to taxpayers.

  • Why are NS&I products not available on platforms and/or back-office systems?

    Over the years, many financial advisers and platform providers have enquired about the possibility of adding NS&I products to their platforms and back-office systems.

    We conducted a review of this opportunity a few years ago, and at the time we decided that it would simply be too costly to add NS&I products to a platform offer, especially to multiple platforms. We continue to monitor the platform market, with a view to adding NS&I products to platforms in the medium to longer term.

    Additionally, the introduction of Open Banking may enable us to do this more easily and cost-effectively, and so we are watching this evolving situation with interest.

  • Can an NS&I Junior ISA be held alongside a Child's Trust Fund or other Junior ISA?

    No, you will have to transfer in your balance from the Child Trust Fund or other Junior ISA.

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