Last month inflation showed what a good return was available from NS & I index linked. But in the next breath commentators were saying deflation is the danger. Is it a good time to commit for three years?

Anonymous 2 needed this 'Off the Record'

Although they are 3 or 5 year term, you only have to hold them for at least a year to get inflation proof return.

Anonymous 3 needed this 'Off the Record'

The key thing is that NS & I index linked bonds currently pay 1% above RPI or if RPI falls below 0% they will continue to pay 1% over their life.

So if 'deflation is the danger' these bonds will be the BEST investment you can make. On the other hand if we see hyperinflation these are the BEST investment you can make. The only time you should question their value is if you think the BOE can keep inflation around 1-2% and you are a non tax payer.

With the market on the edge because of the borrowings, do not lock away your money in case required to meet the inevitable flow of rights issues of some otherwise solid companies who cannot find finance because the banks are hoarding their assets to pay the unjustifiable bonuses of the top bankers, who are as honest as the last bunch of Mps in relation to their expenses.

The bankers say justified, just like the MPs like Brown Balls (MR & Mrs), Malik, Blears, Jackboot Smiff and those now being prosecuted and all of whom are saying I did nothing wrong and followed the rules, the overriding one of which was that the expense was incurred wholly, nesessarily and exclusively in the discharge of the parliamentary duties.

Smiff, a plug, patio decking and 2 washing machines (presumably to launder her ill gotten gains), Brown, 2 kitchens, he was chancellor and PM, not a chef to parliament, and of course the sky progs, presumably to allow him to relax and contemplate his next 'theft' whilst watcjing footie/cricket.

Blears, flip flopping, and Malik refurnishing his main home since the early 2000s (claimed to be his second home) and the Balls mirroring their second homes expense claims. They were not separated!

The bonuses before and after the crash were not earned, but they cannot resist dipping their sticky fingers into the stream of money (ours) they use to make and lose money and then say they earned it, but not paying decent interest on what is after all our money.
.