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If my clients renew their Index-linked Savings Certificates at maturity will it be on the RPI or CPI?
If your clients decide to renew their Certificate on or after 1 May 2019, we will calculate their index-linking on the renewed Certificate using the Consumer Prices Index (CPI) instead of the Retail Prices Index (RPI). The CPI is generally lower than the RPI, so this means your client will probably receive a lower return.
When will NS&I let my clients know when the change from RPI to CPI on Index-linked Savings Certificates is taking place?
We will write to your clients about a month before each Certificate matures and let them know what their options are. Your clients can then decide whether they want to renew or cash in their investment without penalty.
Following the change on Index-linked Savings Certificates from RPI to CPI, are Index-linked Savings Certificates still a good investment?
Index-linked Savings Certificates are still a popular investment with a unique combination of index-linking plus a small amount of additional interest – all tax-free. This means they will guarantee your clients inflation beating returns.
Will the change from RPI to CPI on Index-linked Savings Certificates affect my clients’ existing Certificates?
No, it won’t affect any existing Certificates your clients have until the end of the investment term. However, if your clients decide to renew any Certificates that mature on or after 1 May 2019, the index-linking on the renewed investments will then be calculated using CPI not RPI.
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.
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