national savings - Index LInked

barny_100

barak wrote: »

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

I really worry about some people's finances if they can't figure out this sort of stuff...coming on here before even reading the website is :doh:

bulldo

They are a con. The way they calculate interest means far from keeping savings in line with inflation you will receive extremely poor returns in the present climate. Unfortunately people are not aware of their interest formulae and believe that their interest takes into account the full years rpi. e.g £10000 invested in May 2008 in an index linked savings certificate for 3 years 12 months on is now worth £10055 = around .5% interest rate.
Average RPI for that twelve months = 2.65%. You should expect a return of £10265, but not on their calculations. take some time to look at it and put in a few examples in their online calculator and you will soon see how bad the return is.

Try and ask nsi on their internet site for the monthly rpi figures and see if they are forthcoming, you'd think they would have them to hand as a lot of their investment products rely on them, it took me 3 attempts and a letter of complaint before they were supplied.


Good con fiddle the rpi figures, invest nsi savers money in a bank account in a government run bank paying a better interest rate and use the profit to pay yourself(MP'S) ridiculous expense claims.

RayWolfe

Welcome to MSE.
Do you have anything useful to say that might, for example, help people to save money?

bulldo

RayWolfe not investing in nat savings certificates will help people save money. Dont forget, money is just a scrap of paper with nothing really behind it. This forum was about national savings certificates, you dont appear to have contributed much apart from sarcastic comments