NS&I Index Linked Certs closed for new applications

snowqueen555

Everything we read in the papers talks about how as a nation we have overspent, and that the typical UK person only has about 2-3k in savings. We are encouraged to save up, but interest rates are far below inflation.

So I think we have a right to complain and moan because there is NO other safer investment than this certificate, and any other option entails a much bigger risk.

Not only do I have a two year pay freeze, I also need to pay more tax from next year, and with inflation on top of that its no wonder people like me are a little frustrated to realise they can't even grow what little pot of money they have

lisyloo

Your second paragraph highlights the crucial point that discrimination is permitted where the two persons concerned have some attribute which means they cannot be treated the same in the context of the product being sold.

Completely agree.

So I think we have a right to complain and moan because there is NO other safer investment than this certificate, and any other option entails a much bigger risk.

What's wrong with savings accounts close to 3%?
These are 2.5% above the base rate?

and with inflation on top of that its no wonder people like me are a little frustrated to realise they can't even grow what little pot of money they have

I don't think that people have an automatic right to "grow" their money (I presume you mean above inflation) when accepting no risk at all.
Why do you think this is a presumed right?

I understand that people may have come to accept this by tradition but logically why should it be a right?
If banks lend your money out, they have costs associated and risks (of bad debt).

missile

lisyloo wrote: »

Yes I read (very carefully) it the same as alan

I am assuming that includes fixed savings certificates.



But as it's possible to mis-interpret, then I'd check with them direct.

Please refer to NS&I publication ILSC 11A (2010/02)

From 19 July 2010 these Issues are exclusively available to existing customers reinvesting an Index-Linked Savings Certificate when it matures

I would suggest your assumption is incorrect. Unless you have seen something else or had clarification from NS&I?

Sceptic001

missile, do you have a link for NS&I publication ILSC 11A (2010/02)?

It appears to contradict the NS&I website which says matured fixed rate certificates can be invested in ILSCs.

balf

Sceptic001 wrote: »

missile, do you have a link for NS&I publication ILSC 11A (2010/02)?

It appears to contradict the NS&I website which says matured fixed rate certificates can be invested in ILSCs.

The clue is in the date (2010/02) They have not redrafted the web site to reflect the new conditions.

David.

missile

Sceptic001 wrote: »

missile, do you have a link for NS&I publication ILSC 11A (2010/02)?

It appears to contradict the NS&I website which says matured fixed rate certificates can be invested in ILSCs.

I was sent this document by NS&I. If you want to PM me your e mail address, I would be pleased to scan it and forward you a copy.:A

Please be advised ithis publication confirms that the rates for re-investment of matured ILCs remain the same @ index-linking +1.00% AER. The year by year rates are the same as 3 year 20th issue and 5 year 47th issue.

Miss.Moneypenny_3

I confirm that you are able to reinvest your Fixed Interest Savings
Certificate into an Index Linked Certificate.

If it has matured you will need to complete a reinvestment form and return
it with your existing Certificate.


:j

snowqueen555

lisyloo wrote: »

Completely agree.
What's wrong with savings accounts close to 3%?
These are 2.5% above the base rate?

If the interest earned is less than the rate of inflation, it means your money is worth less. Thats the issue here, the only inflation beating savings offering in the uk is now closed.

I believe government target for inflation is 3-2.5% but 2010 is has fluctuated as high as 5+%

D1zzy

D1zzy wrote: »

B****R - after a week of dithering (NSI or 2 years at about 3.5%)- finally decided that put my latest maturing funds here. Gathered up the necessary paperwork - IDs etc and went to apply online...........................................:(
Don't ever remember there not being an issue available ..Hey Ho!

.. so decision made I'm opting for Coventry BS 2 years @ 3.7%
http://www.coventrybuildingsociety.co.uk/savings/fixedbonds.aspx?WT.ac=HP_1_C2Y34

le_loup

There are loads of 3 year accounts paying around 4% which may just cover future inflation.