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

le_loup

Find out about the terms before issuing your wisdom.

Stochasticity

theGrinch wrote: »

5-year tie is a deal breaker for me

Except of course that there is no 5-year tie-in. You can access your money at any time.

If you access your money within the first year, no interest will be payable.

If you access your money at any point thereafter, you will get each full year's worth of interest, plus any full month's interest in your current year.

So, if you buy today (13th May) and cash in on 17th July next year, you'll be paid the first year's worth of interest, plus interest for the month 13th May - 12th July 2012, but won't be paid interest for the period 13th July - 17th July 2012.

You do need to hold the certificates to maturity in order to benefit from the full 0.5% in addition to inflation as the additional interest on top of the index-linking is slightly tiered. But provided you hold your certificates for longer than a year, you are guaranteed real terms growth in the value of your savings.

So if inflation rapidly abates at any point, you can easily move back into potentially better paying fixed-rate cash products.

Rollinghome

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?

Recent 5 year issues:
12 May 2011 48th Issue - RPI + 0.50%
7 April 2010 47th Issue - RPI + 1.00% (withdrawn 19 July 2010)
29 April 2009 46th Issue - RPI + 1.00%
18 June 2008 45th Issue - RPI + 1.00%
21 May 2008 44th Issue - RPI + 0.70%
02 April 2008 43rd Issue - RPI + 0.35%
25 April 2007 42nd Issue - RPI + 1.35%
20 May 2006 41st Issue - RPI + 1.15%
13 April 2006 40th Issue - RPI + 0.95%

On all the earlier dates there was both a 5 year and a 3 year issue on offer so that you could invest £15K in each, 2 x £15K. Until the 47th issue was withdrawn all were available until the new issue came out.

ed123_2

....the rpi+0.35% didn't last long....

JoeCrystal

@ed123 Indeed!

Anyway, I am still waiting for my fund to leave my account . Just how long it take NS&I to debit my account!

KTF

On my Lloyds account the total balance is showing the full amount still but if you click on the 'available balance' then it is the total balance less my deposit to NS&I so the payment has been taken.

JoeCrystal

@KTF Hmm... I realised that so kept looking at Funds available but alas, it is not taken. Will wait until Monday before chasing it up. It is not likely helpful to use a debit card which not been used for quite some time.

cagneyfan

can anyone tell me what the interest rate for this nsandi certificate is

KTF

As per the discussion in this thread the interest rate is 0.5% over the term. The RPI part is variable.

Rollinghome

ed123 wrote: »

....the rpi+0.35% didn't last long....

RPI fell from 214.8 in Jan 2008 to 212.8 by April and still only 212.9 by Dec, so 0.35% plus nothing when savings rates of over 6% were around presumably didn't look too tempting. As always it's getting the timing right that counts.