NS&I Index-linked Savings Certificates. When will they be back??

nrsql

Savings_Dave wrote: »

Were these pulled as they could foresee a very high RPI for nearly a year? Also with all the QE and money printing they didn't need the public's money?

It might be a while until these return...probably once inflation cools or forecasts look more positive and if interest rates rise a little.

Think it was because they sere too good an investment. Secure and probably better than anything else low risk around. They were sucking up too much money.
Not saying it was because the banks were getting upset but don't think they will be back until things like cash isas can be comparable.

Pinner_Ram

I think its time that someone (MSE perhaps?) put a little pressure on NS&I to tell us when the relaunch will take place. The decision to relaunch has been taken (good old George Osborne) so come on NS&I get your finger out, and MSE, use your influence to get us some definite information. All I get when I ring them is "wait and see".

PR

dunstonh

The decision to relaunch has been taken (good old George Osborne) so come on NS&I get your finger out,

The decision to relaunch was not political. The annual funding levels are set every year and the products are put in place based on those funding levels.

Rumour has it that May is the intended date so not to get in the way of the ISA season.

StevieJ

dunstonh wrote: »

The decision to relaunch was not political. The annual funding levels are set every year and the products are put in place based on those funding levels.

Rumour has it that May is the intended date so not to get in the way of the ISA season.

When was the last time these certificates were suspended before this one? I bet on the first anniversary of the new release in May, RPI will be down close to the 2% target, of course it will just be a coincidence:)

Pinner_Ram

I didn't say it was political, Osborne's comment was the first time I'd heard that IL NSCs will be coming back.

PR

dunstonh

When was the last time these certificates were suspended before this one?

I suppose that would go with the last time they created a funding issue (don't have a clue if that has happened in the past or how close NS&I get to their funding limits on a typical basis).

StevieJ

dunstonh wrote: »

I suppose that would go with the last time they created a funding issue (don't have a clue if that has happened in the past or how close NS&I get to their funding limits on a typical basis).

I don't know it just doesn't seem to hang together, I doubt if there have been many times in the past where the govt had such a need to raise funds. It would make sense however, if they expected RPI to peak in the next 12 months after suspension, after all there were cheaper funding options if RPI was expected (unofficially) to remain high.

ChiefGrasscutter

StevieJ wrote: »

When was the last time these certificates were suspended before this one? I bet on the first anniversary of the new release in May, RPI will be down close to the 2% target, of course it will just be a coincidence:)

I don't think there has ever been a time since the invention of NS savings certificates that none have been available for sale.
Previously each new issue followed seamlessly on from the last.

alanq

In the distant past one bought NSC from a Post Office. You took in your book and they stuck the preprinted certificates into it. If I recall correctly there were periods of a couple of weeks after new issues were announced when none was available as they had to be printed and distributed to Post Offices before they could be sold.

ChiefGrasscutter

Yeah I indeed recall those days.
I 'thought' there was no gap -although I accept I can be mistaken

My recollections of there being no gap arose from when I once went to buy some on the first day of one particular new issue and the PO clerk, by accident/because they had not been informed/whatever issued me with some of the old/previous issue - my parents spotted it instantly - took a lot of sorting out that one!
So I'd assumed from this experience that one could still buy the old issues up to the last day it should have been available at the PO's.

Amnother trick Nat Savings had from those days is that the certificates did not automatically roll over into the current issue if you did nothing at the end of the term. After they matured they automatically went on to an interest rate called the "common extension rate" of usually around 0.5%. It was up to you to physically take the certificates to the PO and re-invest them in the current issue - which you could do regardless of any limit for new money in the issue.

All sounds remarkably familiar to some of the tricks from the banks/building societies in respect of accounts today!