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MSE News: NS&I inflation-beating savings: stick or twist?
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# 41
johnbanks1948
Old 29-06-2012, 10:25 AM
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Default John B

Bought mine on the 29-5-11. This means i now have 13 months. I know the anniversary value but how do i calculate the additional month as i want to cash in next week
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# 42
oldvicar
Old 29-06-2012, 10:40 AM
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Quote:
Originally Posted by johnbanks1948 View Post
Bought mine on the 29-5-11. This means i now have 13 months. I know the anniversary value but how do i calculate the additional month as i want to cash in next week
The simplest way would be to use the calculator on the NS&I website. http://www.nsandi.com/savings-index-...icates?tabid=d

This suggests a total return of 1,045.70 per original 1000 invested (for the 13 months).
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# 43
nearlyretired2004
Old 29-06-2012, 10:56 AM
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Default except .....

.... that when I've called them,as I've said on here before, the figure they come up with is not that which the calculator gives....

I fail to see why if you plug in the EXACT date you bought the certs and the correct issue why the calculator cant come up with the same number as they do on the phone ....

Any ideas?
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# 44
oldvicar
Old 29-06-2012, 11:17 AM
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Very roughly (varies a bit mid-month depending upon date of RPI data publication), it is because the calculator is set up to assume that you are going to cash-in after the next complete month of holding the certificate.

If you are going to cash in beforehand you need last month's calculator - either having downloaded it in time, or as you say by phoning them.
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# 45
nearlyretired2004
Old 29-06-2012, 11:30 AM
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Default Dont you just love these phone calls !!

Me:I'd like an up-to-date valuation of my savings certificate.

NSANDI: Sorry for security reasons we're not allowed to give those over the phone.

Me:You could last month.

NSANDI: Do you actually have your date of purchase and amount?

Me: (I wish I'd said, 'No I was just going to guess some numbers, but I actually said ...) ...yes I do.

Oh thats all right then ...... and calculates the amount for me !

Me: can you tell me why the number you give me isnt the same as the online calculator produces?

NSANDI: which calculator are you using?

Me: ....err the one on your website

NSANDI: ...err, well, no I dont actually know why its different .....
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# 46
oldvicar
Old 29-06-2012, 10:38 PM
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I always get my valuations in writing ... typically once every five years for each certificate. NS&I automatically write with a valuation, and encashment/re-investment options.

I really don't understand why anyone would want to keep bothering NS&I for today's encashment valuation unless they are forced sellers and desperately need to know the exact value to be remitted in advance. Do people keep ringing up banks to ask how much interest they would get if they closed their account today?

To keep an eye on how well an ILSC is performing the online valuation tool is fine - its an accurate figure for certificates one year old or more, just sometimes it looks forward to what a certificate will be worth shortly in the following month rather than right now - it is always clear on the web page.
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# 47
Looter
Old 30-06-2012, 5:04 PM
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If and when a new issue comes out can you invest more than once in the same issue as long as the total doesn't exceed 15k? For example, could I invest 10k and a couple of weeks later invest 5k?
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# 48
MoneySaverLog
Old 30-06-2012, 5:07 PM
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Quote:
Originally Posted by Looter View Post
If and when a new issue comes out can you invest more than once in the same issue as long as the total doesn't exceed 15k? For example, could I invest 10k and a couple of weeks later invest 5k?
Yes if they are still available.
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# 49
johnbanks1948
Old 01-07-2012, 11:32 AM
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Quote:
Originally Posted by oldvicar View Post
The simplest way would be to use the calculator on the NS&I website. http://www.nsandi.com/savings-index-...icates?tabid=d

This suggests a total return of 1,045.70 per original 1000 invested (for the 13 months).
Thanks for that. It says that figure if i cash in july but does that mean i have to wait until 29th july as i bought on the 29th may.
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# 50
pqrdef
Old 01-07-2012, 12:03 PM
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Quote:
Originally Posted by johnbanks1948 View Post
Thanks for that. It says that figure if i cash in july but does that mean i have to wait until 29th july as i bought on the 29th may.
Yes. But don't wait, because you'll get more if you cash in before then.
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# 51
johnbanks1948
Old 02-07-2012, 10:47 AM
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Quote:
Originally Posted by pqrdef View Post
Yes. But don't wait, because you'll get more if you cash in before then.
Many thanks, i rang them this morning and the interest is 458.31 on the 10K i invested which i am happy with
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# 52
antispam246
Old 04-07-2012, 5:24 PM
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Would just like clarification. My initial deposit was July so my anniversary would be July right? If I wanted to cash out would it be July or August?

Finally, If I keep the money in, and look to withdraw in the second year, will July 2013 be penalty free also? Basically, is every anniversary penalty free for withdrawls, if done on the anniversary date? The first year isn't the only penalty free date for withdrawls?

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# 53
lisyloo
Old 04-07-2012, 5:32 PM
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Quote:
If I wanted to cash out would it be July or August?
After whatever part of July your anniversay is on.

Quote:
will July 2013 be penalty free also?
Any date after the first 12 months is penalty free.
It's only the first 12 months that mean you lose interest.

You are better off getting you money after a complete month though, because I believe you only get interest in whole months.
So you want to withdraw after 32 days when you'd get a months interest rather than 16 where you'd lose 1/2 a month. That's my understanding but I'm sure someone will correct me if I'm wrong.

So after the first year it's penalty free, but interest only accrues in monthly chuncks.
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# 54
oldvicar
Old 04-07-2012, 10:21 PM
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ILSC's are designed to be held for the full term, and as an incentive the interest rate on top of index-linking goes up each year, so that overall it meets the headline rate of e.g. RPI plus 0.5% - it will be less than 0.5% in years 1, 2 and 3, and more in year 5.

If you are of a negative disposition, you could say that the penalty for cashing in early is that you will get a lower interest rate.
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# 55
oftm
Old 17-07-2012, 3:02 PM
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The Retail Prices Index (RPI) annual inflation stands at 2.8 per cent in June 2012
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# 56
RobStaffs
Old 17-07-2012, 5:13 PM
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I am still sticking.In effect 0.5% above the index is still decent.Particulary as you can access it after a year.Wont put any more in though should they become available again.
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# 57
dickyb
Old 17-07-2012, 7:17 PM
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With the RPI falling by 0.3% to 2.8% between May & June,surely with 1 year fixed rate accounts paying 3.6% gross now is the time toget out of these certificates?


It is only likely to get worse, isn't it?
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# 58
sabretoothtigger
Old 17-07-2012, 7:46 PM
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Default



Quote:
Originally Posted by dickyb View Post
With the RPI falling by 0.3% to 2.8% between May & June,surely with 1 year fixed rate accounts paying 3.6% gross now is the time toget out of these certificates?


It is only likely to get worse, isn't it?

It is likely to get worse which is why you'd want to build up a stock of these issues when possible not rely on opportunities repeating in future.
I'd say its better to cash out when RPI peaks not in any dip as rolling forward those produce greater % 'gains'
Quote:
Originally Posted by Leslie Poles Hartley
The past is a foreign country: they do things differently there
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Tokyo residential prices have gone from 4x London in 1990 to London in 2014

Last edited by sabretoothtigger; 17-07-2012 at 7:49 PM.
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# 59
drlabman
Old 17-07-2012, 7:59 PM
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Quote:
Originally Posted by sabretoothtigger View Post
It is likely to get worse which is why you'd want to build up a stock of these issues when possible not rely on opportunities repeating in future.
I'd say its better to cash out when RPI peaks not in any dip as rolling forward those produce greater % 'gains'
When you say worse, what do you mean? Inflation increasing or decreasing?
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# 60
oldvicar
Old 17-07-2012, 10:30 PM
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Quote:
Originally Posted by oftm View Post
The Retail Prices Index (RPI) annual inflation stands at 2.8 per cent in June 2012
Grammatically / statistically this is nonsense.

The RP Index fell in June. [The price of the 'basket' went down]. In general those thinking of selling ILSCs soon would be better to sell now rather than next month.

But I am sticking, for the medium and long term.
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