NS&I Index Linked Certs closed for new applications

nrsql

messeditup wrote: »

Ns&I, whose profits go to the Treasury, took the decision to stop selling them to new customers from yesterday after investors snapped up £5.4billion of them in the past three months, the highest total ever. The only people who will be able to get them in future are the 1.45 million customers who already have them or who have two or five-year fixed interest savings certificates.

That would surprise me.
I would expect them to bring out another issue at some point in the near future at a lower rate (perhaps negative).

cheerfulcat

Says here -

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.

nrsql

cheerfulcat wrote: »

Says here -

They're saying that the product has been withdrwn. I think they usually say that the issue is closed. Maybe they are serious.

alanq

When they say an issue is closed there is a new issue of the product available. There is no new issue available at present so it said is to have been withdrawn.

Upwind

I've read through the majority of posts made on this thread. Most are above my head and many deal with disgruntled posters who didn't sign up to the NS&I Index Linked Certs. I did and invested (after seeing it on MSE) £15,000 in a 3 year Cert. I also advised my Father that it was a good thing also - and I believe he also invested.

What I don't understand is, whether the Government withdrawing further issues affects those who have already invested. Is this still a good investment?

Sceptic001

Mick_Steel wrote: »

What I don't understand is, whether the Government withdrawing further issues affects those who have already invested.

No.

Is this still a good investment?

In my opinion, yes! :beer:

alanq

nrsql wrote: »

I would expect them to bring out another issue at some point in the near future at a lower rate (perhaps negative).

NS&I were targeted to hold deposits at the same level as last year +/- £2billion. It has already raised £2.4 billion extra in Q1 of 2010-2011. So it will only be seeking to obtain new investments when a substantial amount of funds have flowed out and I think it is safe to assume that the rates will be very unattractive. The surprise is that they didn't introduce products on less attractive terms to slow the inflow before getting to the stage of withdrawing them completely.

http://www.nsandi.com/press-room/press-releases/pr201019

guitarman001

For clarification..... I put £11k into a 3-year certificate last month. I just rang up and the adviser told me I couldn't put more money in.. is this correct then, I can't put more money into that same certificate to take me up to £15k?

penrhyn

No you can't. Historically you could have bought additional certificates in the same issue up to the maximum of 15K. The issue has been withdrawn so you cannot buy further certificates.

guitarman001

Damn, I really regret not maxing out..... Thanks for the info!!