Should you buy National Grid bonds?

National Grid has launched a new bond for the retail market. Its key attraction for hard-pressed savers is that over the ten years the capital value of the bond rises in line with the RPI. So should you buy it?

If you are looking for an inflation hedge that is absolutely guaranteed to protect your capital, you're out of luck. Now that NS&I has withdrawn its index-linked bond from the market, there isn't one.

If you want to be sure you get your capital back when you want it, you need to put it into one of the banks covered by Britain's deposit guarantee. But not one of them will allow you to maintain the real value of your savings: use the British banks and you guarantee that your wealth will be slowly eroded from here. So what do you do? National Grid thinks it has the answer.

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Merryn Somerset Webb

Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).

After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times

Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast -  but still writes for Moneyweek monthly. 

Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.