When to cash in NS&I Index-linked Savings Certificate?

bigfreddiel wrote: »

and then you can let it rollover for more tax free interest....

fj

That's almost certainly a deciding factor as like ISA's once you withdraw your money thw tax free status is gone forever.

zerog wrote: »

If you let it roll over, you won't be able to cash it in early any more. See the T&C changes from today.

See what you mean, good things don't last, it looks like they are trying to reduce the numbers with these certs. It seems that the govt think they can get their funding elsewhere at cheaper rates, but as I said, good things don't last You will have to be careful if you cash these in during term, if you do it just before an anniversary it could cost 15 months interest, more sneaky tricks from the Treasury?

Index-linked Savings Certificates will start changing on 20 September 2012. What’s new?
Here is a summary of what’s changing.
Financial changes

• penalty and loss of index-linking for cashing in early
  The penalty is equivalent to 90 days’ interest on the amount cashed in. And you’ll lose the index-linking on your whole Certificate for the investment year in which you cash in.
• minimum balance of £100
  If you cash in part of your Certificate, you’ll need to keep at least £100 invested for the Certificate to remain open.
• single annual rate of interest for each Issue
  We will pay a guaranteed rate of interest that stays the same for the length of the term (previously the annual rates started low and increased each year during the term).

Looter wrote: »

To throw another spanner into the works, with the changes to the terms and conditions of fixed rate investments from NS&I, am I right in thinking that there will be no penalty if I cash in my index linked bond before 20 Sept 2012, but there will be if I cash in after that date? Also, does anyone think they have brought this rule in to encourage people to cash in their bond early with the way inflation is going?

MY understanding of the new rules is that the penalty will only apply if/when you roll over into a new issue AFTER the bond maturity date - the rules won't apply to early encashment of an existing bond whenever you cash in.
This taken from the Q and A page on the site:-
"What happens next?
If you have an existing Index-linked Savings Certificate, don’t worry. The changes will only affect you if your Certificate matures on or after 20 September 2012, and you choose to renew it for a further term. So you don’t need to do anything yet.
We’ll write to you around 30 days before your Certificate matures, to remind you that it’s time to decide what to do with your money. We’ll include full details of the changes to your investment, together with information explaining your choices for renewing or cashing in.":cool: