NS&I Index Linked Certs closed for new applications

edited 19 July 2010 at 9:23AM in Savings & Investments
133 replies 13.1K views
dunstonhdunstonh Forumite
106.7K Posts
Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
✭✭✭✭✭✭
edited 19 July 2010 at 9:23AM in Savings & Investments
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.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
«13456714

Replies

  • lisyloolisyloo Forumite
    27.1K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    Well I guess it's true that they must have been heavily oversubscribed.
  • BigglesBiggles Forumite
    8.2K Posts
    ✭✭✭✭
    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
  • edited 19 July 2010 at 10:03AM
    alanqalanq Forumite
    4.2K Posts
    1,000 Posts Combo Breaker
    ✭✭✭✭
    edited 19 July 2010 at 10:03AM
    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.
  • edited 19 July 2010 at 9:57AM
    Sceptic001Sceptic001 Forumite
    1.1K Posts
    edited 19 July 2010 at 9:57AM
    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 Previously they have always had a new issue to replace the withdrawn issue.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.
  • edited 19 July 2010 at 10:00AM
    alanqalanq Forumite
    4.2K Posts
    1,000 Posts Combo Breaker
    ✭✭✭✭
    edited 19 July 2010 at 10:00AM
    "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
  • penrhynpenrhyn Forumite
    15.2K Posts
    Part of the Furniture Combo Breaker
    ✭✭✭✭✭
    Miserable sods, Cable is going on about banks screwing customers then the state owned outfit does the same.
    That gum you like is coming back in style.
  • alanqalanq Forumite
    4.2K Posts
    1,000 Posts Combo Breaker
    ✭✭✭✭
    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
  • missilemissile Forumite
    11.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    That will put an end to the will I won't I buy NS&I ILCs
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
  • Sceptic001Sceptic001 Forumite
    1.1K Posts
    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?
  • DiggerUKDiggerUK Forumite
    5K Posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    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.
This discussion has been closed.
Latest MSE News and Guides

Energy price cap could be extended beyond 2023

New plans have just been announced by the Government

MSE News

Cheap contents insurance for tenants

DON'T assume your landlord covers you

MSE Guides

Summer sizzlers round-up

Incl £2ish sun cream & £1.50 disposable BBQs

MSE Deals