Which to go first, cash ISA or NSI index linked bonds

2

Comments

  • Lansdowne
    Lansdowne Posts: 570 Forumite
    You of course have the option of cashing in part of your ISA holdings and part of your ILSC to retain a balanced mix.

    polymaff wrote: »
    Staying is a gamble that the RPI will rise AND that NS&I will not abandon the ONS RPI

    But surely if that change is made it will affect new issues from a given date, so at the time of renewing it will be clear what the terms are for the full 3/5 years ahead.
  • polymaff
    polymaff Posts: 3,904 Forumite
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    Lansdowne wrote: »
    But surely if that change is made it will affect new issues from a given date, so at the time of renewing it will be clear what the terms are for the full 3/5 years ahead.

    Why "surely"?

    Read the NS&I definition of "RPI" in the current Terms and Conditions of NS&I Inflation Linked Saving Certificates.
  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
    edited 24 November 2015 at 11:07AM
    masonic wrote: »
    The real question is how far behind inflation would interest rates be allowed to lag?
    One of those questions thats inseparable from politics. The current UK Government will not raise interest rates of their own volition because Osborne's obsessive housing market interventions have run up massive public debts to subsidize high house prices for landlords like themselves, which depend on low interest rates to stoke up demand.
    Their wealth is in assets which insulate them from inflation.
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
  • badger09
    badger09 Posts: 11,201 Forumite
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    Stubod wrote: »
    Hi, next April our 2 year fixed rate ISAs are up (2.2%)...and around that time so are some of our 3 and 5 yr NSI index linked bonds......we may need some money to live of for a year or two..so just wondering which one you would give up first?....the NSI have been OK, (we have rollde them over twice now), but they are looking bit weak now. Not sure about ISA interest rates, but for the last 2 years we have been putting money into S&S ISAs instead, and we have "committed some further funds to these going forward, (monthly input).

    thanks for any advise

    How much is in your cash ISAs?

    Have you both maxed out all the high interest paying current accounts?
  • Stubod
    Stubod Posts: 2,164 Forumite
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    Hi,

    ..yes we have almost maxed out on main current accounts...but may consider a 3rd (joint) Santander...just struggling to find another 2 DD's.....planning on retiring (early) sometime soon as our "stuff the job" fund is almost there...just the joys of "zero" income for a few years until pensions kick in..(although will probably take them early as I can't bare the thought of no income).

    So will need to decide which "pots" to drain first. May take advise of one of the above posts and burn the Cash ISA's as we will not have any dosh available to fill the current ISA limits in the future, and it looks unlikely there will be any more NSI's...and at least they are index linked so should give some long term hedge against inflation.
    .."It's everybody's fault but mine...."
  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
    edited 24 November 2015 at 7:21PM
    redmalc wrote: »
    I think we are going to be in for a spell of negative inflation very shortly which will make the decision more difficult because everything will be worth buttons
    Why?
    Back to basics. Short term fluctuations aside - caused by temporary factors (like dirty foreign money launderers buying up London properties) the value of our currency depends on our exports. But we import far more than we export which has already got us into astronomical debts. This situation does not lead to 'negative inflation'. It inevitably leads to hyperinflation. Osborne's obsessive housing market interventions have diverted investment from productive manufacturing, into unproductive property speculation because he's made it more profitable, but thats unsustainable because its built on massive public subsidy and debt.
    The Germans can't understand the British obsession with house prices and invest in industry instead. Consequently they have just posted another record surplus, and Britain another record deficit. What do you think is going to make up for the loss of our exporting industries like Steel, Coal, Manufacturing, and North Sea Oil? A surge of foreign tourists coming to see if they can catch a glimpse of the Royal Hangers On ;)
    Seriously, I'd really like to know.
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
  • masonic
    masonic Posts: 23,245 Forumite
    Photogenic Name Dropper First Post First Anniversary
    polymaff wrote: »
    Read the NS&I definition of "RPI" in the current Terms and Conditions of NS&I Inflation Linked Saving Certificates.
    Why are you sending people to look at the T&Cs when you know that they are unclear about this point - to the extent that you yourself sought clarification?

    Don't forget that under the Unfair Terms in Consumer Contracts Regulations:
    7.—(2) If there is doubt about the meaning of a written term, the interpretation which is most favourable to the consumer shall prevail but this rule shall not apply in proceedings brought under regulation 12.
    (reg. 12 relates to injunctions to prevent continued use of unfair terms)
  • polymaff
    polymaff Posts: 3,904 Forumite
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    masonic wrote: »
    Why are you sending people to look at the T&Cs when you know that they are unclear about this point - to the extent that you yourself sought clarification?

    Oh, pipe down, masonic. You have your opinion - let others have theirs.
  • masonic
    masonic Posts: 23,245 Forumite
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    polymaff wrote: »
    Oh, pipe down, masonic. You have your opinion - let others have theirs.
    I'm not preventing you from having your opinion. Nor am I preventing you from expressing it. You are the one objecting to me expressing my opinion. If you feel my post above is inappropriate, please feel free to report it using the red warning triangle. Alternatively, please feel free to click on my username and under user lists, add me to your ignore list. I think you will find other methods of censoring me to be ineffective.

    Back on topic, you and I both know the key piece of evidence you have to support your opinion is not in those T&Cs. Why not share it?
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    Stubod wrote: »
    Hi,

    ..yes we have almost maxed out on main current accounts...but may consider a 3rd (joint) Santander...just struggling to find another 2 DD's.....
    Look at Tesco Savings Accounts - which can pull payments from multiple current accounts by Direct Debit. Lots of posts about it on this board.

    Stubod wrote: »
    planning on retiring (early) sometime soon as our "stuff the job" fund is almost there...just the joys of "zero" income for a few years until pensions kick in..(although will probably take them early as I can't bare the thought of no income).
    I've been on "zero" income for nearly seven years. In practice the interest and dividends have exceeded my outgoings in all but one year - the year I got a new bathroom.
    Eco Miser
    Saving money for well over half a century
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