Aug 18 2008
The Times has been giving advice on individual savings accounts (Isas) and their potential to beat inflation.
Parents and other family members trying to put away savings for children often choose cash Isas due to their tax-free advantage. Up to £3,600 of cash can be deposited in each account per tax year.
The newspaper highlighted the advantages of some index-related products that will beat inflation as long as rates do not drop.
Leeds Building Society announced its new Inflation Buster Bond and Isa last week, which has an interest rate guaranteed to beat the current retail price index (RPI) – the figure used to measure the change of household spending – by 2.25 per cent.
Treasury-based NS&I savings certificates and National Counties' index-linked cash Isa were also picked out by the Times this weekend.
Meanwhile, index-linked gilts "offer little value", the article continued, while corporate bonds held in cash Isas can "boost returns by up to 40 per cent".
