New ns&i index linked issue

nrsql

3 & 5 yr both at average of 1%.
Anyone know what the previous issue was?

ManAtHome

Previous issues were the same (RPI+1% average)

[edit] should have put the numbers in - new issues are 19 and 46, previous 18 and 45 were the same rates (also checked annual escalators - they are also the same).

ffacoffipawb

ManAtHome wrote: »

Previous issues were the same (RPI+1% average)

[edit] should have put the numbers in - new issues are 19 and 46, previous 18 and 45 were the same rates (also checked annual escalators - they are also the same).

So why bother with a new issue - desperate for existing investors to lend the Government more money perhaps?

RPI+1% can be beaten by index linked gilts, though the values of these can fall, unlike the NS&I variants.

Count_Dante

ffacoffipawb wrote: »

So why bother with a new issue - desperate for existing investors to lend the Government more money perhaps?

RPI+1% can be beaten by index linked gilts, though the values of these can fall, unlike the NS&I variants.

For higher rate tax payers they are a no brainer. I am not, but like the security of the index linking.

RayWolfe

ffacoffipawb wrote: »

So why bother with a new issue -

Because you can put £15K into each issue.

alanq

They could have increased the limits for the old issues.

ManAtHome

Easier to knock out a new issue at the same rates (especially given govt IT track record).

isofa

alanq wrote: »

They could have increased the limits for the old issues.

Then they'd have been changing the rules, it's been 15K in each cert AFAICR, so obviously easy and sensible to release a new issue, it attracts new money, and saves changing and reprinting the T+Cs.

poppy10_2

Would have been nice to see a little bump in the interest rate. I've got 15k in a previous issue that paid index linking +1.35%

alanq

isofa wrote: »

Then they'd have been changing the rules, it's been 15K in each cert AFAICR,

I can remember a lot longer back and it was not unusual in the distant past to open a new issue with a limit and then raise that limit as additional funds were required.

DavidAC

With RPI predicted to stay below zero for some time I would have thought even high rate tax payers could get a better rate. Maybe woth getting shortly before VAT is put back up but that is not for some time.