Fixed Interest ISA's and Bonds

couldnt think of anything worse

An alternate form of tax-free saving* is National Savings Index-linked 3 year savings certificates.

Why ? They pay 1% + index-linking at RPI.
January's RPI figure was 2.4%, so they are currently paying 1% + 2.4% = 3.4%. And with inflation set to rocket, they will preserve the vlaue of your cash.

Your ISA paying 4.5% might not seem so attractive when inflation is 6% and your money is locked in.

* free from ncome and capital gains tax

be careful with the ns&i as the figs. from what i can tell they use the rpi figure for two months before the date of investment so you wouldn't receive teh 2.4+1 for now.

"When calculating the index-linking on your Savings Certificates, we start with the RPI figure two months before the date of investment. "

good point, hadn't realised.

Thank you Lobby Ludd may revise my thinking and go "Index Linked"

'The Bank of England has switched 70% of its staff pension fund into index-linked gilts......a heavy hint of what to expect'.
(Daily Telegraph 'Money' section 23 Jan p12

O.K. just invested online Index-linked saving with N.S.&I

dont think rates will rise more than 1% this year if that.

you would of been better off saving in an easy access with a years bonus

G! Jockey 4 which is the best Easy Access saving with bonus account to invest in?

Make the most of inflation busting now. It is inevitable that it will fall markedly later in the year!

You can get 3.3% fixed for a year, best i've seen but i haven't looked that much :)