MSE News: NS&I inflation-beating savings to return

Rollinghome

poppy10 wrote: »

0.5% is pretty lame, I still have my 5-year certificates paying RPI+1.35%. Lucky I got in on time.

I think they were withdrawn in April 2008? so really depends on the return you got during a period when inflation was relatively low compared with the very high interest rates of around 7% available from conventional savings.

The reason they're likely to be a good deal for the next year or so is that other interest rates are so low. That hasn't always been the case.

hillwalker2004

Repayment of Certificates by NS&I

70. We can repay Certificates immediately, without needing an application for repayment, if:
(a) we reasonably think any of the persons named in the application have provided false information;
(b) we reasonably suspect that the Certificates are being held for an illegal purpose;
(c) the applicant was not entitled to purchase the Certificate, or the Certificate holder is not entitled to hold the Certificate;
(d) the Certificate holder’s holding exceeds the maximum allowable (see paragraph 41)(to the extent that the holding exceeds the maximum allowable in any one Issue);
(e) the Certificate holder fails to comply, in a material manner, with the terms or conditions for holding the Certificate; or(f) we have any other valid reason to do so.

I hope everyone will comply with the above?! I think in fairness they are saying they can repay early if they suspect anything untoward, but isnt very well worded when read in context with the previous section on how to cash in.

ed123_2

....another good reason for holding these is the interest does not count re the income limit relating to higher level personnal tax allowance...

snooping_around

...........

SCARFACEK

I'm going to invest the max 15k into this issue 48, but was just wondering how often do they make these issues? This is the first time I really looked into NS&I indexed link savings certificates, I think I read somewhere on here that they also made a issue last year, so it is like a yearly thing? Just want to know if I should keep 15k of my savings porfolio always liquid so as to take advantage of these issues when they arise if they do happen on a regular basis.

oldvicar

snooping_around wrote: »

Is it possible to transfer money from my Santander esaver 3 to the ns&i savings certificate or do I first need to transfer to my nationwide current account?

You need to post a personal cheque or apply online and pay with a debit card. So go via your FlexAccount.

oldvicar

SCARFACEK wrote: »

I'm going to invest the max 15k into this issue 48, but was just wondering how often do they make these issues? This is the first time I really looked into NS&I indexed link savings certificates, I think I read somewhere on here that they also made a issue last year, so it is like a yearly thing? Just want to know if I should keep 15k of my savings porfolio always liquid so as to take advantage of these issues when they arise if they do happen on a regular basis.

For many years there was always an issue on offer. Then last year they became too popular and were taken off general sale. There tended to be a new issue at least about once a year and more frequently (sometimes just a few weeks apart) when market interest rates changed significantly.

I expect the current issue will last until they've taken in a target amount then they could go off sale again, probably to return again about this time next year.

There are ways to buy more than £15K in each issue (e.g. a couple can buy for themselves, and also in Trust for each other)

cepheus

What an irresponsible headline from thisismoney, of course they are referring the equivalent rate for higher rate taxpayers!

Thousands scramble for NS&I's 9% rate

http://www.thisismoney.co.uk/savings-and-banking/article.html?in_article_id=533375&in_page_id=7&ct=5

lisyloo

0.5% is pretty lame

For many people's circumstances it may be the best rate they can get, so I'd hardly call it lame.
The guarantee to beat inflation, the safety and the tax free nature makes it a valuable product IMO.

If you're saying it was better in the past - then clearly it was, but we have to deal wih the options available to us now.
If you've already used your ISA allowance and your a tax payer then these are a really good option IMO.

theGrinch

5-year tie is a deal breaker for me