Index Linked NS&I maturing this month?

Lansdowne

On another thread I made the suggestion below and have since taken my own advice. A few days ago I received a maturity letter saying the value on maturity on Feb 10th would be £2047.67. I sent the certificate off to cash it in early and today received £2075.11 in my YBS Internet Saver account. The value of your certificates reduces on the day in the month corresponding to the date of purchase.

For the explanation see the original thread.

Lansdowne wrote: »

Again without taking my word as Gospel:
Interest is given for complete months. If you bought it on August 18th, and cash it in on February 18th, that is 6 months and the RPI "applicable to" February is used.
If you bought it on August 18th, and cash it in on February 17th, that is only 5 months and the RPI "applicable" to" January is used.

The RPI applicable to February is that published (recently) in January, based on prices in the shops in December. The RPI applicable to January is that published in December basd on prices in November.

Therefore, anyone thinking of cashing their Certificates before maturity, should do so before the purchase date comes round in February. They will get B/A where B=216.0 rather than B/A where B=212.9.

I have certificates maturing on February 10th. Even after the 1.21% bonus is added on maturity, I will be better off cashing them in now (i.e. before February 10th) and lose the 1.21% but gain the 1.4% difference between 216 and 212.9.