NS&I Index linked Bonds

tonyj100

Hi,

Has anybody any opinons on the offering from National Savaings for the Index linked bond, or when its on offer the guaranteed equity bond. :xmastree:

Are there better offers out there for a 40% tax payer ?
Allready got my ISA topped up.

Thanks

Tony

cheerfulcat

Hello, Tony,

The index-linked bond is linked to the Retail Prices Index which is showing inflation at 2.5%, so with this product you would get ~3.5% ( this is only an approximate figure because the way the return is calculated is slightly complicated ). For a higher rate taxpayer it actually works out pretty well; you'd need a deposit account paying ~5.8% gross to get that.

GEBs are not good products in general and the NS one is no exception.

Are there better offers out there for a 40% tax payer ?
Allready got my ISA topped up.

Have you contributed to a pension? That's a pretty good deal for a higher rate tax payer.


HTH

Cheerfulcat

dunstonh

also (potentially), low yield unit trusts/oeics. Investment bonds (of the correct type). Offshore bonds. Use with/partner for investing as well.

tonyj100

Hi,

Thanks for all the helpfull comments. Whats an oeics, how do I find out about them.
Already invested in PEPs.

Tony

dunstonh

OEICS are the replacement for unit trusts. From the consumer point of view, there is little difference. Most Unit trusts have already moved over to being OEICs.

Your PEP funds, for example, may be OEICs.

Wirenth

The index linked saving certificates are actually tax free. And it remains so as long as you retain that Issue of the certificate, or transfer it to a new Issue.

This is one of the ones I'm thinking of:

http://www.nsandi.com/products/ilsc/overview.jsp