NS&I Index-Linked Certs

david78

I have been wating for the interest rate on the 3 year certs to go up and now they have. The only problem is my patience ran out and I bought the 13th edition last week: the certificate arrived today! It was for £2000 so probably not worth cashing in and re-investing to get the extra 0.1%.

[Deleted User]

whoops I had to edit my earlier post as I got the figures wrong.

I have arranged money transfer into my bank as we will both be buying the new issue 3 year certs. I doubt inflation will fall in the next few years

vulcan59

I've been looking through the forums and site to see if there are any opinions on these. Can't find any opinions from Martin (apologies if I've missed something).

With RPI at 3.9% these are looking very attractive for a 40% tax payer. Any reason why I'm not seeing them recommended round here?

Thanks.

StevieJ

Here is a previous thread.

StevieJ

I have bumped aprevious thread on this.

david78

vulcan59 wrote:

With RPI at 3.9% these are looking very attractive for a 40% tax payer. Any reason why I'm not seeing them recommended round here?

I think most people are better off funding cash ISAs first.

But if you have used your cash ISA (and stocks/shares ISA) allowances then index linked certificates can be very useful for higher rate tax payers if you are happy to lock cash away for 3 or 5 years.

Keep some cash in other savings accounts too though.

I personally have some, and will buy some more. Must do all I can to stop greedy Gordon from taking some of my interest.

StevieJ

These saving certificates can be cashed in after one year and you receive RPI + 0.9 or 0.7 tax free.

vulcan59

david78 wrote:

I think most people are better off funding cash ISAs first.

But if you have used your cash ISA (and stocks/shares ISA) allowances then index linked certificates can be very useful for higher rate tax payers if you are happy to lock cash away for 3 or 5 years.

Keep some cash in other savings accounts too though.

I personally have some, and will buy some more. Must do all I can to stop greedy Gordon from taking some of my interest.

Yeah, that's pretty much my thinking as well. I have ISAs fully funded and don't mind tying the money up for 3 years.
Thanks.

[Deleted User]

We started investing in these 2 years ago and were lucky enough to buy the max in the 5 year certs. We then bought the 3 year certs a couple of months ago and I am now drip feeding funds into the current 5 year certs

IMO they are very good if you already have a savings pot. If I had a mortgage then I would be using the funds to be paying sums off the capital instead. It is horses for courses and the certificates won`t suit everyone. They are grand if you need to keep the money in a safe place without erosion due to inflation. You do need to feel that you can buy them and forget about them for the required time

Now that we have a good base of money with them we do intend to drip feed so that we get a regular tax-free income later. It also seems a pretty good way to tie up the tax free cash taken from a pension fund