Act now to get best savings % this year - index-linked savings from National Savings

PasturesNew

I find the whole system confusing, to be honest. The website/wording was confusing and it isn't obvious to people "not in the know" so to speak what the deal is, how it works etc... so you shuffle off confused.

I tried a few times to look into getting an account and always failed to do so. I think the problem was I was trying to get an account for a different address to where I was living (communal hallways with all mail chucked on the hallway table randomly meant I had no confidence in having banking information registered to that address, so wanted to use my parents' address). I think there was some "prove who you are" mail which arrived, which needed dealing with within a short timeframe - and as my mail was being forwarded weekly by my parents I think it just ended up that I'd left it too long, so my application just lapsed.

Maybe I'll have another go at it ...

wriggly

Andreg wrote: »

For certificates maturing in January the RPI that was published in mid December is used. I believe that means if you invest in January2010 the base index that is used for calculation of the interest will be 216.6 (published 15Dec2009) , but if you invest in February the base index will be 218 (published 19Jan2010).

So, to boost your return, you should always check the index level if you are investing after the RPI is published. If the RPI is unusually lower than the previous month, wait until the first of the next month before investing. If (like this month) the RPI is sharply higher than the previous month, get invested quick.

This is incorrect and you cannot gain by waiting until the RPI figures are published.

The RPI published mid-January (218) is the RPI for December, and this is the value used for NS&I bonds bought in January. If you buy in February, you will find out the starting value in mid-February when the January RPI values are published.

The 216.6 value (the November RPI, published in December) was valid for certificates purchased in December.

fred101_2

wriggly wrote: »

This is incorrect and you cannot gain by waiting until the RPI figures are published.

The RPI published mid-January (218) is the RPI for December, and this is the value used for NS&I bonds bought in January. If you buy in February, you will find out the starting value in mid-February when the January RPI values are published.

The 216.6 value (the November RPI, published in December) was valid for certificates purchased in December.

I have just used the NS&I online calculator and it does appear that Andreg is actually correct. I bought my certificate on 15th Jan and the calculator shows that it has increased in value due to the 218 figure published on 19th Jan (ie its base value is the Dec figure of 216.6). I then also changed the calculator start date to 25th Jan and this also reflected the same increase. This calculator would therefore suggest that the base figure for a calendar month is the figure published in the previous calendar month, even if a new figure has been published in that month. I hope that all makes some sort of sense!!!

martinman3

Aaargh ! The NS&I online calculator has now been converted to Adobe Flash for no good reason and I have the Flash Add-On disabled by default.

Do they believe that their customers will be happy to download an optional browser add-on (and manage to de-select the optional Google Toolbar download) just to get an approximate valuation ?

Arthurian

https://www.nsandi.com seems to be down at the moment.

wriggly

fred101 wrote: »

I have just used the NS&I online calculator and it does appear that Andreg is actually correct. ...This calculator would therefore suggest that the base figure for a calendar month is the figure published in the previous calendar month, even if a new figure has been published in that month. I hope that all makes some sort of sense!!!

Looks like I stand corrected - the actual Terms and Conditions say:

15. An index-linked valuation under these terms and conditions will be related to the movement of the UK General Index of Retail Prices maintained by the Office for National Statistics, or any Index replacing that Index. This movement is indicated by the Index figure issued monthly and subsequently published in the London, Edinburgh and Belfast Gazettes. For the purposes of these terms and conditions, the Index figure applicable to any calendar month will be the Index figure issued in the immediately preceding calendar month.

so NS&I use the figure "issued in" the preceding month, not "issued for" the preceding month, and Andreg's tip works (with the caveat that you are also changing the effective anniversary and maturity months, which may work out better or worse overall).

lisyloo

Sorry if this is a dumb question but if you "re-invest" after the term, does this count towards the limit?

We have a large 5 figure sum in ISA's so wouldn't want to lose the ISA benefit and then find we have a problem with the limits.
So does the limit apply to new money only? or all money incuding re-investments?

How often does a new issue come out?
Is this per person?

Basically want to know our max limits.
I am married.
So is it £15K EACH on the 3 year plus £15K each on the 5 year? How often?

Thanks

RayWolfe

The only limit is £15K per issue. There tends to be several issues each year.

RayWolfe

Stop editing when I'm replying
£15K per person, per issue ... 15 at 3 years and 15 at 5 years times two of you ... is that enough? If you have that much, will you marry me?

lisyloo

Stop editing when I'm replying
will you marry me?

You'd have to get used to me interrupting you all the time :rotfl:

Thanks Ray.
As 40% tax payers it might be useful if we came into an inhertiance and we were already using the ISAs.
All good stuff to know for the future.

No, we're not likely to run out.