MSE News: NS&I inflation-beating savings: stick or twist?
Comments
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Why anyone would withdraw from these because they found a savings rate that gives a slightly better interest rate (for now...) is beyond me! The product guarantees an above inflation tax free return for 5 years. That guarantee is worth something too. I like that you can dunk the money in and ignore it but also the penalties for early withdrawal are not high so you can get at it if you need it for something.Sealed Pot Challenge #239
Virtual Sealed Pot #131
Save 12k in 2014 #98 £3690/£60000 -
Do not forget that the government is attempting to "inflate" the economy by printing new money. So inflation is likely to remain above target for the foreseeable future.
Also, take experts opinions with a big pinch of salt as they have been persistently wrong for four years.
Finally BoE governor Meryvn Kings pension is still 100% invested in index-linked investments..... He has not cashed in yet.. As far as I am concerned, it pays to follow what the BoE governor does rather than says.0 -
Bought a £1,000 Index-Linked Certificate just to see what happens.
The NS&I website seems to be designed by some communist bureaucrat who has no concept about user friendliness.
You still have to send the damned thing through the post to redeem, and God knows what happens if they lose it.0 -
end of year 1 for me too. Hanging on.........0
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Agreed the NS&I website is a tad clunky, but have you had a better near-instant access place to put your £1000 for the past year?Bought a £1,000 Index-Linked Certificate just to see what happens.
The NS&I website seems to be designed by some communist bureaucrat who has no concept about user friendliness.
You still have to send the damned thing through the post to redeem, and God knows what happens if they lose it.
And, for the record, I have had various NS&I products over the past 50 years and have never had any admin problems with them. Not a bad record, compared to other financial institutions. :j0 -
The NS&I calculator uses the latest figures available and currently gives a value for selling next month (in June), thereby covering 13 months not 12 months and...
blah blah
...when the RPI figures for March were published, rather than waiting for the first anniversaries of purchase to have already gone past. But if it had been more timely, could it still have been billed as "Latest" or "News" ??
OK, so for someone who bought on (any day in) June 2011, the correct calculation would be to use April RPIs?
April 2012: 242.5
April 2011: 234.4
Increase is 1.034556... + 0.0025 additional interest = 1.0370563...
× 15000 = £15555.84.
And for the 15687 figure mentioned above: £15572.98 locked in in May
April 2012 RPI ÷ March 2012 RPI =
1.0070598... + 0.0035/12 additional interest =
1.00735... × 15572.98 = £15687.46.
Right or wrong?0 -
Perhaps not but, at least, it is telling you that you can now do something with them if you want to. It is, perhaps, worth commenting that MSE has done a little more than NS&I on that score.Bit of a non-story as this site cant tell you what to do with them anyway...
You just can't satisfy some people. Probably the very same people who complained because banks didn't remind them of a bonus coming to an end.
Warning: In the kingdom of the blind, the one-eyed man is king.
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OK, so for someone who bought on (any day in) June 2011, the correct calculation would be to use April RPIs?
And for the 15687 figure mentioned above: £15572.98 locked in in May
April 2012 RPI ÷ March 2012 RPI =
1.0070598... + 0.0035/12 additional interest =
1.00735... × 15572.98 = £15687.46.
Right or wrong?
I purchased a week after the launch on 18th May so although the calculator figures I get of £15687 might represent 13 months I was waiting for the April RPI to be published on May 22 to get what I "deemed" would to be a more representive anniversary figure.... well in my mind anyway.
I dont know what calendar dates the future RPI figures are published on but I dont beleives its a fixed date of the 22nd.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 -
If you're interested, you can download the dates (pdf) :-II dont know what calendar dates the future RPI figures are published on but I dont beleives its a fixed date of the 22nd.
<Consumer Price Indices Publication dates 2012 - 2013>
The next publication date is 19th June 2012 (for May RPI)
then :-
17th July 2012
14th August 2012
18th September 2012
16th October 2012
13th November 2012
18th December 2012
15th January 2013Warning: In the kingdom of the blind, the one-eyed man is king.
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Sceptic001 wrote: »Agreed the NS&I website is a tad clunky, but have you had a better near-instant access place to put your £1000 for the past year?
And, for the record, I have had various NS&I products over the past 50 years and have never had any admin problems with them. Not a bad record, compared to other financial institutions. :j
Surely it's a lot more work to have a human being processing the redemption than it is to send money to a verified account (registered for Premium Bond) automatically. Maybe the union objected, because hundreds of civil servants will lose their job.
I hope they don't send a cheque, when I eventually do redeem. It's a good thing I haven't got a 9 to 5 job, otherwise I would have to post the cheque to the bank.0
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