NS&I Index Linked Certs closed for new applications

dunstonh

I have yet to see any other source yet but NS&I is withdrawing its fixed interest and index-linked savings certificates and cutting rates on its direct saver and income bonds by 0.25 per cent with immediate effect.

http://www.moneymarketing.co.uk/investments/nsi-slashes-rates-and-pulls-products/1015348.article

It looks like applications yet to arrive but already in the post will be refused.

lisyloo

Well I guess it's true that they must have been heavily oversubscribed.

Biggles

I see the 'Tax-free investments' page of the website shows both Index-Linked and Fixed Interest Savings Certificates as 'No Issues currently on sale' http://www.nsandi.com/savingneeds/taxfreeinvestments

alanq

I am surprised that they felt the need to withdraw Fixed Rate certificates and cut the rate on Direct Saver and Income Bonds as they weren't offering market leading rates even for higher rate tax payers.

No mention in the article of what happens when existing certificates mature. I cannot remember a time when there was no National Savings Certificate issue on offer.

Sceptic001

Interesting move. The NS&I press release is here. I don't remember this ever happening before. Previously they have always had a new issue to replace the withdrawn issue.

EDIT: alanq - according to the press release maturing issues can still be rolled over.

alanq

"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However, as Savings Certificates have been withdrawn from general sale, customers who have invested in other NS&I products will not be able to reinvest their money into Savings Certificates."
http://www.nsandi.com/press-room/press-releases/pr201018

penrhyn

Miserable sods, Cable is going on about banks screwing customers then the state owned outfit does the same.

alanq

dunstonh wrote: »

It looks like applications yet to arrive but already in the post will be refused.

"Postal applications received today (19 July 2010) will be honoured, "

http://www.nsandi.com/press-room/press-releases/pr201018

missile

That will put an end to the will I won't I buy NS&I ILCs

Sceptic001

There was a discussion on last week's Money Box Live (BBC Radio 4) amongst the experts about NS&I maybe switching from RPI to CPI for its index-linked products. This was the first I had heard of it. Maybe that is their cunning plan?

DiggerUK

From the NSI press release;
..........."balancing the interests of our savers, the taxpayer and the stability of the wider financial services market."

There in a nutshell is the reason for the withdrawal from sale.
The banks and finance houses were seeing their source of revenue dry up at a rate of knots, and went squealing to the government.

"That will put an end to the will I won't I buy NS&I ILSCs" (missile).
No it won't, but those who want to buy will have to tune in to NSI's website on a daily basis to grab them when they do come up.
Problem is, what will the bonus be when they do.