NS&I 6.3% savings product

Grolsch30

Hi,

I was just reading about NS&I 6.3% 3 or 5 year savings product (NS&I Index-linked Savings Certificates), on Martins Banking/ Savings section.

I am interested in this but I cannot find anywhere on the NS&I website where it states this percentage rate, can anyone enlighten me where I find this so that if I do apply I will know that I will get this rate?

Also would this product also be included in this lottery the NS&I do every month or is this only for standard bonds?

Many thanks

StevieJ

Good try

dunstonh

Very funny. However, others have already beaten you to it.

I dont think you will get many take the bait.

Grolsch30

Somehow I feel a bit of a plonker but it was an honest question:

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#guaranteed


hmmm

StevieJ

Grolsch30 wrote: »

Somehow I feel a bit of a plonker but it was an honest question:

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#guaranteed


hmmm

I still think you are avin a larf, why don't you read the article

It's important to understand the rate you earn varies each year with inflation and while some predict it’ll be reasonably high going forward, that’s not guaranteed. At half its current rate, this product's beatable by top savings deals

I presume your point was the guaranteed bit, well it is guaranteed to be 1% above RPI if you keep full term.

dunstonh

Ok, still not sure if you are being serious or not.

Assuming you are not and at the risk of taking the bait, there is no such product. Its bad reporting by MSE and the subject of many a post pointing out how wrong it is. The product is RPI + 1%. Because RPI over the last 12 months was higher (mainly due to VAT increase and fuel), those that invested in NS&I index linked certs over 12 months ago had a good year. However, if you invest in them now you are not going to get last years RPI rate. You will get the rate going forward. That could be the same, higher or lower. The VAT increase that is likely to come could give the headline rate a jump but then the VAT increase last year would drop off the headline rate which would largely cancel out the increase. Inflation is expected to fall so the chances of getting another 6.3% is unlikely.

You wouldnt expect an article saying that the FTSE went up 40% last year so if you invest now, that is what you will get next year. Yet that is what the article is saying with NS&I index linked certs.

That said, they are good and certainly worth considering. However, the presentation of them is wrong in this case.

Grolsch30

StevieJ wrote: »

I still think you are avin a larf, why don't you read the article



I presume your point was the guaranteed bit, well it is guaranteed to be 1% above RPI if you keep full term.

Yes i was refering to that and on the NS&I website I was trying to find the RPI so that if i decided to go for this then i would be guaranteed this 6.3% for the first year, I am aware that it may go up or down in the following years.

When do they set RPI is it just once a year or monthly like interest rates?

Also this lottery the NS&I do is it just on normal bounds or also valid on this product?

Honestly not trying to pull anyones leg even if it does come across that way :beer:

Grolsch30

Thanks dunstohn,

Thats cleared it up.

I was looking to put £15k into it but now I'm not to sure.


Thanks again.

StevieJ

Grolsch30 wrote: »

Thanks dunstohn,

Thats cleared it up.

I was looking to put £15k into it but now I'm not to sure.


Thanks again.

The RPI is calculated on a monthly basis, here is a nice user friendly chart.


http://www3.hants.gov.uk/finance/retailpricesindexandconsumerpriceindex.htm

Mr_K

yes, i'm umming and ahhing over whether to put £15k in NSI or stick it in the 2.8% Egg savings account.

Worst case scenario with NSI is that at least you're money is protected and you're guaranteed 1%.

Guess I might wait till the budget and see what happening with VAT. Down think that'll go up till April next year though.

It is a very poor 'tabloid' article by MSE, designed to get more email subscribers no doubt.

Grolsch30

Mr_K wrote: »

yes, i'm umming and ahhing over whether to put £15k in NSI or stick it in the 2.8% Egg savings account.

Worst case scenario with NSI is that at least you're money is protected and you're guaranteed 1%.

Guess I might wait till the budget and see what happening with VAT. Down think that'll go up till April next year though.

It is a very poor 'tabloid' article by MSE, designed to get more email subscribers no doubt.

If your not to bothered about having a fixed term savings product then there was one for 5% by ICIC i think and it's also protected by the Government protection thingy! but it's for 5 years though.