NS&I Saving Certificates

Sceptic001

RayWolfe wrote: »

That's for Index Linked. Don't think it applies to other products.

There is no limit on fixed rate certificates either, although current rates are very uncompetitive even for top rate taxpayers. T&C here ss21-26 apply

Consumerist

Sceptic001 wrote: »

There is no limit on fixed rate certificates either, although current rates are very uncompetitive even for top rate taxpayers.

According to this NS&I website, Fixed-interest Savings Certificates are also limited to £15K per issue.

You can hold an unlimited amount in different issues.

Sceptic001

JamesU wrote: »

Mar RPI = 220.7, knowing that the Apr RPI = 228.1 is higher (3.4%) and already fixed, with a potentially higher return after 12mths (% return = 3.4 + 0.85 + 11 mths RPI inflation)http://forums.moneysavingexpert.com/showpost.php?p=32308133&postcount=69

The earlier poster made a mistake. The RPI figure for April is 222.8, not 228.1, so the month-on-month increase is 0.95%, still quite alarming if annualised, but not quite as bad as 3.4%!!!

JamesU

Sceptic001 wrote: »

The earlier poster made a mistake. The RPI figure for April is 222.8, not 228.1, so the month-on-month increase is 0.95%, still quite alarming if annualised, but not quite as bad as 3.4%!!!

Good grief, and there I was about to get the family to buy ILCs! Thanks for this Sceptic, checked ONS directly myself and you are right! Have deleted my earlier lunchtime threads on this to avoid confusion.

In any case, yes this is a significant mth/mth jump in RPI and if this continues over the next few months, which I feel is likely, this does not look good especially given the potential VAT increases after the emergency budget and weak sterling. Thanks again for pointing out the correction.

JamesU:)

dqnet

JamesU wrote: »

Good grief, and there I was about to get the family to buy ILCs! Thanks for this Sceptic, checked ONS directly myself and you are right! Have deleted my earlier lunchtime threads on this to avoid confusion.

In any case, yes this is a significant mth/mth jump in RPI and if this continues over the next few months, which I feel is likely, this does not look good especially given the potential VAT increases after the emergency budget and weak sterling. Thanks again for pointing out the correction.

JamesU:)

Great..!!! Just when I thought of purchasing some certifiactes.. Should we all stay away now?

JamesU

dqnet wrote: »

Great..!!! Just when I thought of purchasing some certifiactes.. Should we all stay away now?

RPI inflation has been rising month on month since January of this year based on RPI figures released (not %RPI) and if this trend continues ILCs could be a good idea. But the suggestion of a 6.3% return by MSE is misleading as it is based on the last 12 months RPI inflation and is not the guaranteed return over the next 12 months. Link below which explains this.

JamesU


https://forums.moneysavingexpert.com/discussion/2436929

Jonbvn

Sceptic001 wrote: »

There is no limit on fixed rate certificates either, although current rates are very uncompetitive even for top rate taxpayers. T&C here ss21-26 apply

The major benefit they offer is that you can role them over into index linked at maturity, without effecting the 15k limit.

Consumerist

JamesU wrote: »

. . . and if this trend continues ILCs could be a good idea.

At this point in time we have been told that VAT is going to rise to 20% so there we have a 2% increase in most prices. The energy companies complain that their input prices have risen by 80% recently so we know that energy prices are going to rise. We know that petrol prices are on the rise. RPI includes mortgage costs and it is certain that mortgage rates are going to rise before too long to push up further the RPI inflation.

It would seem to me that if ever there was a time to bank on inflation then that time is now.

Mervin King, governor of the Bank of England, seems to think, however, that inflation will be back on trend (RPI of around 2.7% pa) by the end of the year.

The decision on whether or not to buy ILCs is a question of what you believe will actually happen over the next three to five years..

hippyshakes

I'm looking for further clarification on this as it's always in the email each week now. I don't think you get the variable RPI each month. I was surprised to read the NSandI leaflet which explained it very differently. You get the rate from 2 months or something previous and the rate at the end of the term ( whenever you cash in ) is my understanding ?? The email makes it look so easy but I really don't think 7.9 % is possible in real terms

moneylover

feel so grumpy I could cry. Over the years I have learnt so much from this site but the NS&I has beaten me and I still dont understand even after all the kind postings in this thread. I would like to save if this is a good product but obviously not unless I understand what I am doing.
I do not understand why the high RPI of 5.3% is being trumpeted as a reason for buying if the rate of inflation is likely to drop over the next year. If a year from now its lower than now then all I would get if I took my money out would be 1%.? For example if RPI was 6.3% then the interest would be 2% (minus the bit they reduce it by if you cash in early) but if it was 5.3% or lower I would just get 1% Is this right?