If anyone has more than £500 spare that they're happy to tie up for 5 years, National Savings have an offer on at the moment of RPI +1.5%.... closes September 1st. Inflation-proofing a chunk of my savings seems like a good idea at the moment. Seriously considering it.
Plus 1.5? Are you sure? I think it's 0.5. If not, I'm shifting my money first thing tomorrow! Oh, and if it is the one I'm thinking of, you can get out after a year and still benefit from some index-linking, or so I read on moneysavingexpert.
When I first looked there was a 3 year bond which was +0.5% and a 5 year bond which was +1.5%. But now when I look the 5 year bond seems to be RPI +0.5%. There is, however, an explanation of how the interest is worked out here which I'm sure will make sense if I stare at it for long enough.
Even at RPI 0.5% - I'd buy. Its the only thing I know of which is sure to keep up with inflation. Its likely there will be higher inflation to come, but interest rates may stay low - where else can you put your money and be sure it won't erode? And as commander says, you can get it out if you have to after a year.
Tax free too - I'm not a higher rate taxpayer but if you are its very good indeed