NS&I Index Linked 5 Year Bond - reinvested
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passau91
Posts: 64 Forumite
Morning All
I took out the NS&I Index Linked 5 year bond in May 2011. As I failed to keep track of this investment , NS&I did not have my current address and so when the bond matured in May this year, it was automatically rolled over as they did not hear from me.
That would be OK, but I note that now the bond pays inflation plus 0.01% ... Bearing in mind that I am (just) a 40% bracket tax payer, would it be more sensible to move the £17,250ish to some other interest bearing account? Maths is my worst subject, so assuming I could get 1% plus somewhere else, based on the current inflation rate of 0.6%, does that sum come out to be the same?
Any assistance would be appreciated.
I took out the NS&I Index Linked 5 year bond in May 2011. As I failed to keep track of this investment , NS&I did not have my current address and so when the bond matured in May this year, it was automatically rolled over as they did not hear from me.
That would be OK, but I note that now the bond pays inflation plus 0.01% ... Bearing in mind that I am (just) a 40% bracket tax payer, would it be more sensible to move the £17,250ish to some other interest bearing account? Maths is my worst subject, so assuming I could get 1% plus somewhere else, based on the current inflation rate of 0.6%, does that sum come out to be the same?
Any assistance would be appreciated.
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i believe inflation is based on RPI which is currently 1.8.Morning All
I took out the NS&I Index Linked 5 year bond in May 2011. As I failed to keep track of this investment , NS&I did not have my current address and so when the bond matured in May this year, it was automatically rolled over as they did not hear from me.
That would be OK, but I note that now the bond pays inflation plus 0.01% ... Bearing in mind that I am (just) a 40% bracket tax payer, would it be more sensible to move the £17,250ish to some other interest bearing account? Maths is my worst subject, so assuming I could get 1% plus somewhere else, based on the current inflation rate of 0.6%, does that sum come out to be the same?
Any assistance would be appreciated.0 -
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The subject has probably been done to death on the other threads, but basically the NSandI certificates are guaranteed to pay you RPI, which no other bank deposit account on the planet will offer you.
Who cares if RPI was 1.6% over the *last* year and some bank would now give you 1.7% over the *next* year. You do not have the information to say whether the 1.7% is higher or lower than inflation over the *next* years because you do not know that that number will be. It would be sensible to assume that inflation will increase to something more than its current level.0 -
bowlhead99 wrote: »The subject has probably been done to death on the other threads, but basically the NSandI certificates are guaranteed to pay you RPI, which no other bank deposit account on the planet will offer you.
Who cares if RPI was 1.6% over the *last* year and some bank would now give you 1.7% over the *next* year. You do not have the information to say whether the 1.7% is higher or lower than inflation over the *next* years because you do not know that that number will be. It would be sensible to assume that inflation will increase to something more than its current level.
Thanks all for your replies. I did try a forum search, but clearly I failed to enter the right phrase to reach the correct forum thread! As I suspected, the account is probably best left with NS&I unless I actually need to get my hands on the cash before the new 5 year term is up. Your views have been very reassuring.0
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