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  • FIRST POST
    • LizMac42
    • By LizMac42 12th Sep 17, 10:23 AM
    • 5Posts
    • 0Thanks
    LizMac42
    Should I renew my NS&I Index-linked Certificate
    • #1
    • 12th Sep 17, 10:23 AM
    Should I renew my NS&I Index-linked Certificate 12th Sep 17 at 10:23 AM
    My 3 year NS&I Index-linked certificate Issue 26 at 0.5% + RPI has just come up for maturity. It is now worth nearly £20,000.


    As the RPI index is now rising (2.9% at present time) would experts think I should renew it at 0.1% + RPI or look for a better savings rate eg a bond?


    Thanks in anticipation of any advice.
Page 1
    • eskbanker
    • By eskbanker 12th Sep 17, 11:33 AM
    • 6,268 Posts
    • 6,344 Thanks
    eskbanker
    • #2
    • 12th Sep 17, 11:33 AM
    • #2
    • 12th Sep 17, 11:33 AM
    Do you think you'll find a better rate than 3% elsewhere for £20K over three years at a comparable level of risk (and if so, where)?

    Obviously RPI can and will fluctuate over the term but so will savings rates elsewhere (unless you fix) so you can only really make such decisions on current rates....
    • taylornj
    • By taylornj 12th Sep 17, 12:25 PM
    • 178 Posts
    • 89 Thanks
    taylornj
    • #3
    • 12th Sep 17, 12:25 PM
    • #3
    • 12th Sep 17, 12:25 PM
    My 3 year NS&I Index-linked certificate Issue 26 at 0.5% + RPI has just come up for maturity. It is now worth nearly £20,000.


    As the RPI index is now rising (2.9% at present time) would experts think I should renew it at 0.1% + RPI or look for a better savings rate eg a bond?


    Thanks in anticipation of any advice.
    Originally posted by LizMac42
    Look again CPI today was 2.9%, RPI was 3.9% for August 2017. From here...

    https://www.ons.gov.uk/economy/inflationandpriceindices

    But ONS is pushing use of CPIH which is 2.7%, rather than CPI.

    So that's RPI @ 3.9% + 0.1% = 4%, plus it's a tax free 4%. So if over Personal Savings Allowance any bond will pay at least 20% tax so would need to be in excess of 5% interest to better these, or 6.67% for a higher rate tax payer. Plus bond income would count as income towards tax allowances/thresholds.
    • ManAtHome
    • By ManAtHome 12th Sep 17, 12:26 PM
    • 8,170 Posts
    • 5,301 Thanks
    ManAtHome
    • #4
    • 12th Sep 17, 12:26 PM
    • #4
    • 12th Sep 17, 12:26 PM
    It's CPI that is 2.9%, RPI will be a percent or so higher - had a dig round but no mentions found so far.

    Whatever it is, it's what you've been paid for the latest year, going forward - as per eskbanker's post, pure guesswork.

    [edit] cheers taylornj, must have looked too early, latest when I checked was July.
    Last edited by ManAtHome; 12-09-2017 at 12:30 PM. Reason: Cross posting
    • LizMac42
    • By LizMac42 12th Sep 17, 7:46 PM
    • 5 Posts
    • 0 Thanks
    LizMac42
    • #5
    • 12th Sep 17, 7:46 PM
    • #5
    • 12th Sep 17, 7:46 PM
    Thanks so much for all this advice and information - I think I will renew
    • redmalc
    • By redmalc 13th Sep 17, 4:00 PM
    • 1,267 Posts
    • 477 Thanks
    redmalc
    • #6
    • 13th Sep 17, 4:00 PM
    • #6
    • 13th Sep 17, 4:00 PM
    its a no brainer get renewing
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