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

chris1

Rollinghome wrote: »

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7 April 2010 47th Issue - RPI + 1.00% (withdrawn 19 July 2010)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%

Where did you find this please? I can't see it on the NS website anywhere. (I'm looking for old year-by-year rates.)
Many thanks

Rollinghome

chris1 wrote: »

Where did you find this please? I can't see it on the NS website anywhere. (I'm looking for old year-by-year rates.)
Many thanks

They've got various details back to 2004 here if that's any help http://www.investmentguide.co.uk/natinde2.htm

nrsql

I wonder what will happen to 3 yr rollovers if they don't bring out a 3 yr certificate.

oldvicar

nrsql wrote: »

I wonder what will happen to 3 yr rollovers if they don't bring out a 3 yr certificate.

There IS a new 3-year IL certificate, launched at the same time on 12 May.

However it is not "on general sale". It is ONLY for those with existing 3-year certificates maturing who want them to roll over for another 3 year term.

It pays (surprise surprise) RPI + 0.5% over the term.


EDITED TO ADD:

I think there is still as before the option to re-invest your maturing 3 year certificates into a 5-year certificate (either the 48th Index Linked or the new fixed rate one)

cepheus

I notice the Banks are playing up against the competition. Seems that the public sector can't ever get anything right in the private sectors eyes - even when they have a better product (or a less worse one).

You would think they hadn't received a massive handout of public money, so they can hardly play the 'unfair public subsidy' card!

If they want to compete lets see some of those profits transferred to savers.

Banks' anger at NS&I return is disgraceful

Opinion by Dan Hyde
14 May 2011

Banks are furious that NS&I's inflation-busting bonds have returned because they 'can't compete'. But our savings correspondent, Dan Hyde, is utterly disgusted by their selfish moaning...

Read more: http://www.thisismoney.co.uk/savings-and-banking/article.html?in_article_id=533456&in_page_id=7#ixzz1MJ0MsFq2

gadgetmind

For banks to compete with this, they'd need to be giving interest rates of 6-9% due to the tax free nature of NS&I bonds. The banks can currently borrow money by issuing senior unsecured debt at around 5%, though new rules might increase this by a few hundred basis points. Why would they give private investors, with all their messy and expensive customer service issues, a better deal than corporate investors?

If you want a better yield then do what the big boys do and buy bonds or preference shares, but you do need to understand the risks and how bond yield curves behave if/when interest rates rise.

Mikey17

Can i ask please, are these certificates a good idea for a non tax payer
My wife does not work , so pays no tax on her savings. Thank you very much

jules9

Can I just query some things i am not clear on:

This seems to be the best available savings offer at the moment.
I have £15k that I seek to invest for a 5 year term.

Is it best to buy in one hit or divide it into three buys?
Thereby enabling partial sells if something better comes along?

If I buy one lot for £15k can I make partial withdrawals?

Is it really going to make any difference if I buy this week or wait a week or two for another month comes along?

How long do people think this offer will last bearing in mind the media spotlight on the deal?

Doc_N

jules9 wrote: »

Can I just query some things i am not clear on:

This seems to be the best available savings offer at the moment.
I have £15k that I seek to invest for a 5 year term.

Is it best to buy in one hit or divide it into three buys?
Thereby enabling partial sells if something better comes along?

If I buy one lot for £15k can I make partial withdrawals?

Is it really going to make any difference if I buy this week or wait a week or two for another month comes along?

How long do people think this offer will last bearing in mind the media spotlight on the deal?

No point in dividing into three - you can do partial withdrawals which achieve exactly the same effect.

On the question of how long this is going to be available, it's impossible to predict, as it depends entirely on demand. Today's 'Money Box' at 12.02 on Radio 4 will doubtless give their view on this. My advice, for what it's worth, would be to buy now.

bugbyte_2

Mikey 17

I THINK this is a good bet for non tax payers as well. For Example, Birmingham Midshires offer RPI + a better rate over 5 years, but you can only get at your money if you die within the term. NS&I you can cash in when you like and still benefit after 1 year, so if something better turns up or you need the money next year you can still go for it.

For comparison terms, I believe you would have to find a savings account that was accessible that pays 5.8% non tax payer, 7.25% basic, 9.67 higher. Good luck if you can find that!

My understanding is that you can buy multiple certificates for this issue up to £15K. This is important to me, as I have just brought a £500 cert, whilst the bulk of our savings are transferred from elsewhere. This will take up to a week, and I am hoping the issue is still going by then.