NS&I ILSC Matures next month

bigfreddiel

My 3 year NS&A ILSC (15th Issue) matures next month and you get a few options:

a) let it roll over automatically for another three years
b) Cash it in
c) Invest in another NS&I product including ILSCs

My question is if I pick option a) let it roll over automatically for another three year term do I get the same percentage on top of RPI as the 15th issue or do I get the current issue (20th) percentages. Its quite important as the 15th issue was +1.35% and the 20th issue is only +1.00%

Cheers

fj

RayWolfe

You will get the issue on offer on the expiry date, currently 20.

Sceptic001

RayWolfe wrote: »

You will get the issue on offer on the expiry date, currently 20.

Yes, and you don't have to wait a year before getting the index-linking/fixed interest. So what you effectively have is an instant access account (well, more or less instant), paying RPI (currently 5.1%) + 1% tax free. Looks like a no-brainer to me! :beer:

bigfreddiel

Sounds good to me - thanks to all that replied

fj

Supplemental question:

I have already maxed out on issue 20 (last month), my wife hasn't, should she max out as well?

We could also max out on the 5 year (Issue 47) - would that be a good thing to do (both maxed out on cash isa's this year as well).

I'm due to retire next year and the wife is already retired and we both fill out tax returns.

barak

bigfreddiel wrote: »

My 3 year NS&A ILSC (15th Issue) matures next month and you get a few options.....

My question is if I pick option a) let it roll over automatically for another three year term do I get the same percentage on top of RPI as the 15th issue or do I get the current issue (20th) percentages. Its quite important as the 15th issue was +1.35% and the 20th issue is only +1.00%

Your maturity letter does show [1] the percentage return you will get in addition to RPI, and [2] that it will apply even if a new issue is announced before your maturity date.

Don't forget that it's the change in the RPI Index during the next three years that will determine how well you do.

missile

I would be interested to know what return you get on this saving certificate when it matures .........

le_loup

Erm...
A guaranteed 1% pa then inflation as measured by RPI at each anniversary.

ManAtHome

missile wrote: »

I would be interested to know what return you get on this saving certificate when it matures .........

Just had a letter for a 3-year one maturing the end of this month (issue 15, RPI+1.35%) - total return just a smidge under 14% (4.45% AER).

missile

ManAtHome wrote: »

Just had a letter for a 3-year one maturing the end of this month (issue 15, RPI+1.35%) - total return just a smidge under 14% (4.45% AER).

Thanks. My issue 15 returned 11.77% over three years (3.78% AER) in March.

le_loup

RayWolfe wrote: »

You will get the issue on offer on the expiry date, currently 20.

Now that the certificates are not available, it's anyone's guess what rate you will get. But they will allow the rollover, it's in the contract.

Sceptic001

le_loup wrote: »

Now that the certificates are not available, it's anyone's guess what rate you will get. But they will allow the rollover, it's in the contract.

NS&I say this on re-investment:

On maturity, existing Savings Certificate customers can continue to rollover their investment into the same Issue they currently hold. They can also reinvest into any of the Savings Certificate terms and Issues – either the 3 or 5 year Issue of Index-linked Savings Certificates or the 2 or 5 year Issue of Fixed Interest Savings Certificates – regardless of which Savings Certificate they currently hold.

However, as Savings Certificates have been withdrawn from general sale, customers who have invested in other NS&I products will not be able to reinvest their money into Savings Certificates.