When to cash in NS&I Index-linked Savings Certificate?
Comments
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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.If the ball had gone in the net it would have been a goal.If my Auntie had been a man she'd have been my Uncle.0 -
bigfreddiel wrote: »and then you can let it rollover for more tax free interest....
fj
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.0 -
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).
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 - penalty and loss of index-linking for cashing in early
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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?0
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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?
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:0 -
In answer to OP, if cashing in soon then the best time is at its one-year anniversary. But only if you really have to since these things are currently irreplaceable.
25 August falls on Saturday this year, Monday's a Bank Holiday, So Tuesday 28th August is the optimum time - put it in the post Friday/Saturday 24/25th, to arrive on the due date, or before with clear instructions to cash in on 28th.0 -
Can anyone who has done this recently advise how long it took to receive their funds? (I know what the website says but am interested in how long it generally takes in practice).
thanks0 -
Can anyone who has done this recently advise how long it took to receive their funds? (I know what the website says but am interested in how long it generally takes in practice).
thanks0
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