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  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 28th May 12, 4:57 PM
    • 2,324Posts
    • 971Thanks
    Former MSE Helen
    MSE News: NS&I inflation-beating savings: stick or twist?
    • #1
    • 28th May 12, 4:57 PM
    MSE News: NS&I inflation-beating savings: stick or twist? 28th May 12 at 4:57 PM
    "It's just over a year since NS&I launched inflation-beating savings, so many customers can withdraw penalty-free ..."

Page 3
  • johnbanks1948
    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
    • oldvicar
    • By oldvicar 29th Jun 12, 10:40 AM
    • 1,069 Posts
    • 944 Thanks
    oldvicar
    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
    Originally posted by johnbanks1948
    The simplest way would be to use the calculator on the NS&I website. http://www.nsandi.com/savings-index-linked-savings-certificates?tabid=d

    This suggests a total return of £1,045.70 per original £1000 invested (for the 13 months).
    • nearlyretired2004
    • By nearlyretired2004 29th Jun 12, 10:56 AM
    • 471 Posts
    • 157 Thanks
    nearlyretired2004
    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?
    • oldvicar
    • By oldvicar 29th Jun 12, 11:17 AM
    • 1,069 Posts
    • 944 Thanks
    oldvicar
    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.
    • nearlyretired2004
    • By nearlyretired2004 29th Jun 12, 11:30 AM
    • 471 Posts
    • 157 Thanks
    nearlyretired2004
    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 .....
    • oldvicar
    • By oldvicar 29th Jun 12, 10:38 PM
    • 1,069 Posts
    • 944 Thanks
    oldvicar
    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.
    • Looter
    • By Looter 30th Jun 12, 5:04 PM
    • 130 Posts
    • 112 Thanks
    Looter
    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?
  • MoneySaverLog
    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?
    Originally posted by Looter
    Yes if they are still available.
  • johnbanks1948
    John B
    The simplest way would be to use the calculator on the NS&I website. http://www.nsandi.com/savings-index-linked-savings-certificates?tabid=d

    This suggests a total return of £1,045.70 per original £1000 invested (for the 13 months).
    Originally posted by oldvicar
    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.
  • pqrdef
    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.
    Originally posted by johnbanks1948
    Yes. But don't wait, because you'll get more if you cash in before then.
  • johnbanks1948
    John B
    Yes. But don't wait, because you'll get more if you cash in before then.
    Originally posted by pqrdef
    Many thanks, i rang them this morning and the interest is £458.31 on the £10K i invested which i am happy with
    • antispam246
    • By antispam246 4th Jul 12, 5:24 PM
    • 875 Posts
    • 725 Thanks
    antispam246
    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?

    • lisyloo
    • By lisyloo 4th Jul 12, 5:32 PM
    • 20,417 Posts
    • 9,510 Thanks
    lisyloo
    If I wanted to cash out would it be July or August?
    After whatever part of July your anniversay is on.

    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.
    • oldvicar
    • By oldvicar 4th Jul 12, 10:21 PM
    • 1,069 Posts
    • 944 Thanks
    oldvicar
    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.
    • oftm
    • By oftm 17th Jul 12, 3:02 PM
    • 28 Posts
    • 18 Thanks
    oftm
    The Retail Prices Index (RPI) annual inflation stands at 2.8 per cent in June 2012
    • RobStaffs
    • By RobStaffs 17th Jul 12, 5:13 PM
    • 262 Posts
    • 43 Thanks
    RobStaffs
    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.
  • dickyb

    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?
    • sabretoothtigger
    • By sabretoothtigger 17th Jul 12, 7:46 PM
    • 9,928 Posts
    • 6,562 Thanks
    sabretoothtigger


    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?
    Originally posted by dickyb

    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'
    Last edited by sabretoothtigger; 17-07-2012 at 7:49 PM.
    Tokyo residential prices have gone from 4x London in 1990 to ¼ London in 2014
    There is no other agency of government which can overrule actions that we take
    by Greenspan, Federal Reserve
    • drlabman
    • By drlabman 17th Jul 12, 7:59 PM
    • 201 Posts
    • 30 Thanks
    drlabman
    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'
    Originally posted by sabretoothtigger
    When you say worse, what do you mean? Inflation increasing or decreasing?
    • oldvicar
    • By oldvicar 17th Jul 12, 10:30 PM
    • 1,069 Posts
    • 944 Thanks
    oldvicar
    The Retail Prices Index (RPI) annual inflation stands at 2.8 per cent in June 2012
    Originally posted by oftm
    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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