Inflation Linked Savings discussion area

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  • Middle_Sister
    Middle_Sister Posts: 548 Forumite
    Name Dropper First Post First Anniversary
    I initially invested £15K 3 years ago which is now estimated at £17,321.12. I cant work out how much interest I've been paid? Help.
  • Stompa
    Stompa Posts: 8,348 Forumite
    Name Dropper First Post First Anniversary
    Middle_Sister wrote: »
    I initially invested £15K 3 years ago which is now estimated at £17,321.12. I cant work out how much interest I've been paid? Help.
    About 4.91% pa.
    Stompa
  • astrogeezer
    astrogeezer Posts: 20 Forumite
    Opened a 5 year index linked NS&I bond 6 September 2011, which matures on the anniversary 2016. As the rate of inflation is close to zero (per the ONS), and even adding accrued interest, would it not be financially expedient to cash the bond in and put the money in, say, the Santander 1-2-3 current account at 3%? It would seem unlikely that interest rates/inflation are going to increase anytime soon.
  • alanq
    alanq Posts: 4,216 Forumite
    Combo Breaker First Post
    edited 25 April 2015 at 4:22PM
    astrogeezer wrote: »
    As the rate of inflation is close to zero

    The headlines referring to zero inflation relate to annual increase in CPI.

    Index Linked National Savings Certificates use RPI. The annual increase in RPI for March 2015 was 0.9%. Low but not zero. Forecasts seem to be for a slight increase in inflation for the rest of the year.
    http://www.ons.gov.uk/ons/rel/cpi/consumer-price-indices/march-2015/stb---consumer-price-indices---march-2015.html

    You certificates will earn RPI+something. Bear in mind that the something is highest in the final year.

    If you are saving for the long term, also bear in mind that it is likely you will be given the opportunity to carry over the funds to later issues which may be useful at a time when inflation is higher. I was caught out cashing in during a previous period of low inflation and higher interest rates elsewhere, intending to put extra into later issues when they became available. There never were any further issues.
  • miserable_ol_so_n_so
    miserable_ol_so_n_so Posts: 496 Forumite
    First Anniversary Combo Breaker
    Help please. I was given to understand that a holder could pass on these certificates upon death to whoever. My questions are:
    1.Is this allowed.
    2.If it is, what do I need to do to ensure this happens without any problems.

    Please help. Time is of the essence!
    ....Illegitimi non carborundum

    ...don't let the illegitimate ones grind you down....
  • miserable_ol_so_n_so
    miserable_ol_so_n_so Posts: 496 Forumite
    First Anniversary Combo Breaker
    Looked at their terms and conditions, no 77 goes like this:

    "A Certificate, or part of a Certificate, can only be transferred
    with the consent of the Director. The Director will only give consent
    in exceptional circumstances. Generally, the Director will give
    consent in the case of the inheritance of Certificates on the death of
    a Certificate holder, but not to any transfer which is by way of sale"

    So am getting there. I will now contact them to find out what the holder needs to do, if anything, prior to death, and what an executor of a will needs to do when.
    ....Illegitimi non carborundum

    ...don't let the illegitimate ones grind you down....
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