national savings - Index LInked

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george-ddd
george-ddd Posts: 5 Forumite
in ISAs & tax-free savings
Hi,

I have some index linked savings certificates. They pay RPI +1%.
I've just heard that RPI is now -1.2%.
So are my savings now earning negative interest i.e -0.2% ?

does anyone know?
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  • dunstonh
    dunstonh Posts: 116,596 Forumite
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    no they are not.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • martinman3
    martinman3 Posts: 727 Forumite
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    george-ddd wrote: »
    Hi,

    I have some index linked savings certificates. They pay RPI +1%.
    I've just heard that RPI is now -1.2%.
    So are my savings now earning negative interest i.e -0.2% ?

    does anyone know?

    Please read this thread
    http://forums.moneysavingexpert.com/showthread.html?t=1431685

    As we are in RPI deflation the certificates do not earn index-linking. However, they still earn the +1% at the anniversary.

    So, if you cash in before the next anniversary you get the value at the last anniversary or purchase date, no interest. If you hold until anniversary date you get 1% interest.
  • slinga
    slinga Posts: 1,485 Forumite
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    I've just received the regular email from NS&I supposedly updating their interest rates.

    Why oh why don't they tell me what the interest rate is for the 18th issue ???????:mad:
    It's your money. Except if it's the governments.
  • agsnu
    agsnu Posts: 1,457 Forumite
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    slinga wrote: »
    I've just received the regular email from NS&I supposedly updating their interest rates.

    Why oh why don't they tell me what the interest rate is for the 18th issue ???????:mad:

    Uh, because:

    1. The interest rate for the 18th issue is unchanged (the terms are fixed at the point you took out the bond), if you already have the bonds.
    2. The 18th issue is no longer available, so it's of no relevance to anyone who doesn't have them.
  • RayWolfe
    RayWolfe Posts: 3,045 Forumite
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    RPI + 1%, same as issue 19. What's the problem?
  • slinga
    slinga Posts: 1,485 Forumite
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    RayWolfe wrote: »
    RPI + 1%, same as issue 19. What's the problem?

    Thanks, I know that, but what would my rate be if I took them out in September 2008?

    Maybe agsnu could help me out there as well.
    It's your money. Except if it's the governments.
  • RayWolfe
    RayWolfe Posts: 3,045 Forumite
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    edited 21 May 2009 at 7:36PM
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    RPI + 1%
    Sorry if that's not the answer you want. Maybe someone can give you a different answer.


    Or .... wait for it .... you could look on your certificate! Wouldn't that be scary?
  • slinga
    slinga Posts: 1,485 Forumite
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    RayWolfe wrote: »
    RPI + 1%
    Sorry if that's not the answer you want. Maybe someone can give you a different answer.


    Or .... wait for it .... you could look on your certificate! Wouldn't that be scary?

    Certificate doesn't state actual rate.

    No need for sarcasm.:naughty:

    Bit smart are you???
    It's your money. Except if it's the governments.
  • barak
    barak Posts: 1,258 Forumite
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    You don't get the benefit of the whole 1% until you have held the certificates for the full period of 3 or 5 years. It builds up gradually.

    For details, why not have a look at the NS&I website .....

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

    There is also a helpline which gives valuations.
    ".....where it is corrupt, purge it....."
  • RayWolfe
    RayWolfe Posts: 3,045 Forumite
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    slinga wrote: »
    Certificate doesn't state actual rate.

    No need for sarcasm.:naughty:

    Bit smart are you???

    Yes it does.
    Bit foolish are you?
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