When to cash in NS&I Index-linked Savings Certificate?
PParka
Posts: 260 Forumite
I'm about to cash in an NS&I Index-linked Savings Certificate but have totally confused myself trying to work out the best date to do this.
I purchased it on 25 August 2011 and was going to cash it in on 25 August 2012.
However, the RPI figure has just been released and it's gone up from 2.8% to 3.2%
So, what is the best date to cash it in ???
If I wait until the 1 September, will I get the higher rate?
Or do I need to wait until the 25 September??
I've looked through the NS&I T&Cs, but I'm still unsure.
Thanks
I purchased it on 25 August 2011 and was going to cash it in on 25 August 2012.
However, the RPI figure has just been released and it's gone up from 2.8% to 3.2%
So, what is the best date to cash it in ???
If I wait until the 1 September, will I get the higher rate?
Or do I need to wait until the 25 September??
I've looked through the NS&I T&Cs, but I'm still unsure.
Thanks
0
Comments
-
Is It fixed term?This is an open forum, anyone can post and I just did !0
-
No, not fixed term.
It's a 5-year certificate, but can be cashed in at any time.0 -
http://www.nsandi.com/savings-index-linked-savings-certificates
terms and conditions and calculator.0 -
Ahhh... school boy error.
Just realised it isn't going to make any difference when I cash it in.
The first years interest is based on the RPI figure on the anniversary of the purchase. Waiting an extra month won't mean 3.2% will be used instead of 2.8%0 -
Ahhh... school boy error.
Waiting an extra month won't mean 3.2% will be used instead of 2.8%
Jun 2011-Jun 2012, 12 months, 2.806%, plus
Jun 2012-Jul 2012, 1 month, 0.124%
plus a smidgeon of bonus and a smaller smidgeon for compounding.
Or you could reckon it as
Jun-Jul 2011, 1 month, -0.223%
Jul 2011-Jul 2012, 12 months, 3.153% (the new headline figure, before rounding)
Same end result.
If the last month had been a bad month in absolute terms, it would pay to hang on. But actually it's only been a bad month in relative terms - prices have gone up a little bit at a time of year when they normally go down. But they've still gone up less than the annual average, so this isn't a good month to hang on.
In general, since odd months aren't seasonally adjusted, it tends to pay to hang on through a high season and sell before a low season. And this is the low season in spite of the headlines.
Actually this is the first Jun-Jul RPI increase since 1990 and the biggest since 1983."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
Can someone confirm something for me. If you have deposited 15000 in year 1 and on the anniversary date you it is worth 15675. Will the interest at the end of year 2 be calculated on the 15675 figure? ie 15670* the RPI ?
thanks0 -
If you have deposited 15000 in year 1 and on the anniversary date you it is worth 15675. Will the interest at the end of year 2 be calculated on the 15675 figure? ie 15670* the RPI ?"It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0
-
With no more ILSC's being issued this year, I'm happy to keep the benefit of the extra £15000k tax free element over and above my ISA allowance at a stilll decent rate and with easy access .. at least until my next annual anniverary of May 2013,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
-
With no more ILSC's being issued this year, I'm happy to keep the benefit of the extra £15000k tax free element over and above my ISA allowance at a stilll decent rate and with easy access .. at least until my next annual anniverary of May 2013,
fj0 -
bigfreddiel wrote: »and then you can let it rollover for more tax free interest....
fj
The bad news is you can only do this once if there aren't any on general sale.0
This discussion has been closed.
Categories
- All Categories
- 343.1K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.6K Spending & Discounts
- 235.1K Work, Benefits & Business
- 607.8K Mortgages, Homes & Bills
- 173K Life & Family
- 247.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards