NS&I 5 year index linked saving certs 2011 issue - half way point!

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Comments

  • chucknorris
    chucknorris Posts: 10,786 Forumite
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    slinga wrote: »
    My thoughts are that I read so many posts on here advocating cash ISAs/NSI index linked and IMO they aren't a good investment and many here think they are.


    They are not an investment! They are savings!
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • slinga
    slinga Posts: 1,485 Forumite
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    I notice on this site that the meaning behind posts gets lost by someone being a bit too pedantic.
    Things can then get out of hand.
    I expect we'll get some more of it now and the thread will go to pieces.
    It's your money. Except if it's the governments.
  • innovate
    innovate Posts: 16,217 Forumite
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    You need to allow for people who have way more money than the annual ISA allowance to put away each year. To tell these people they shouldn't have put money into NSI index linked is not very helpful. And yes, these IL certificates are savings, not investments.

    It is also up to each individual how they split their portfolio between equities, brick & mortar, and cash. There is no generally applicable rule for this.
  • lisyloo
    lisyloo Posts: 29,609 Forumite
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    Yes UT fund ISAs are more risky but over 3 years and even the last 5 years when there has been a lot of downside in markets all my UT funds have done better than having the money in a NS&I index linked or cash ISA.

    I would agree with you for money that people have for the long term e.g. 5 years +.
    For people who can't tie their money up this long then they need savings not investments.
  • slinga
    slinga Posts: 1,485 Forumite
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    innovate wrote: »
    You need to allow for people who have way more money than the annual ISA allowance to put away each year. To tell these people they shouldn't have put money into NSI index linked is not very helpful. And yes, these IL certificates are savings, not investments.

    It is also up to each individual how they split their portfolio between equities, brick & mortar, and cash. There is no generally applicable rule for this.
    Good post, imo.

    I will say that the interest on my savings is greater than the interest on the NS&I savings:cool::rotfl:

    I didn't mean that there are any fast and hard rooles and they change anyway with the individual concerned.

    I was initially saying I'd pulled out my NS&I because of the low interest rates which I believe are a joke and was just mentioning an alternative.
    It's your money. Except if it's the governments.
  • slinga
    slinga Posts: 1,485 Forumite
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    lisyloo wrote: »
    I would agree with you for money that people have for the long term e.g. 5 years +.
    For people who can't tie their money up this long then they need savings not investments.
    But NS&I does tie your money up for a certain period. Withdraw it early and you might lose interest.
    With a UT ISA fund or even a UT fund you can withdraw at any time and gain or lose depending on how the fund is doing at that time.

    Pay your money and make your choice.
    I was putting forward an alternative to the miniscule interest the Gov gives with NS&I.
    It's your money. Except if it's the governments.
  • chucknorris
    chucknorris Posts: 10,786 Forumite
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    edited 20 December 2013 at 10:00AM
    slinga wrote: »
    I notice on this site that the meaning behind posts gets lost by someone being a bit too pedantic.
    Things can then get out of hand.
    I expect we'll get some more of it now and the thread will go to pieces.


    It is you that is missing 'the meaning behind posts' some people have need for savings and some have need for both savings and investments, they are different products.


    It is not about being pedantic, it is about recognising that they are different products and therefore shouldn't necessarily be compared, because they may be serving different purposes and/or needs of the individual. I do have a small amount in NSI (15k) and a much larger amount in other savings, then a larger amount in stocks and a much larger amount again in property.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • chucknorris
    chucknorris Posts: 10,786 Forumite
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    innovate wrote: »
    It is also up to each individual how they split their portfolio between equities, brick & mortar, and cash. There is no generally applicable rule for this.


    At the moment my portfolio is:

    14% savings
    14% shares
    13% pension
    59% property

    I intend to build up the pension and shares as I approach retirement with both future income and maturing fixed rate savings bonds.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • talexuser
    talexuser Posts: 3,498 Forumite
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    slinga wrote: »
    I notice on this site that the meaning behind posts gets lost by someone being a bit too pedantic.

    I'm sorry but the difference between savings and investments is not pedantry, it's the most basic fundamental issue in terms of risk and portfolio split for individual circumstances.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    They can't be that bad an investment as they have been withdrawn now for several years, and if offered again would very quickly be oversubscribed. This depends obviously on the return offered compared to inflation, but they are very useful in protecting against losses in real terms and damping equity returns.
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