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

Ader1

I'm going to bit the bullet and apply. Thanks.

whu

Sceptic001 wrote: »

Actually, I would say that at the moment they are the best place for any savings you can tie up for a year or more. I can't see RPI inflation falling much below 3% by May 2012, which means they beat any one-year fix currently available (even better for taxpayers). And remember to review the prospects for inflation and savings rates twelve months from now.

I agree with that and for those who have more than £15k it is a shame as this is the best option ATM

adindas

Not quite sure, but someone mentioned that they normally have a new issue every 3 months.

whu wrote: »

I agree with that and for those who have more than £15k it is a shame as this is the best option ATM

lisyloo

They did in the past.
There is no guarantee of what will happen this time.
If you are married or have a partner then you can of course double up, but I'm sure whu hasn't missed that.

kar999

lisyloo wrote: »

.
Inflation is expected to reduce in fact one memebr of the MPC has nailed his flag to the post and says he'll leave if his prediction is wrong.
A fixed or variable savings account MAY do better.

In an interview last week, the BoE Chief Economist Dale Spencer said he is worried about inflation staying high and consequently interest rates would need to rise*. http://www.guardian.co.uk/business/2011/may/21/interest-rate-rises-likely-economist (also published in the FT)

* The Bank of England's quarterly inflation report, released earlier this month, predicted inflation would reach 5% this year. It forecast that inflation would remain above the government's 2% target throughout 2012 before falling back. But it said this would only happen if interest rates rose in line with market expectations from the third quarter of 2011.
Dale said: "I'm not at all confident that the recovery has taken hold and will definitely power away. However, I'm even more worried about what's going on in terms of inflation."

As you suggest, these is possibly going to be a point at some future stage where other savings products MAY overtake the benefits of these tax-free certs. Being able to cash them in and switch elsewhere, rather than be locked into a fixed rate ISA, is a significant benefit when/if that point arrives.

Mrs Kar and I have both readily taken up the maximum £15k allocations. I dithered about last summer and missed the boat when they abruptly slammed the door shut on the previous issues, withdrawing them due to oversubscription.

The only way I was able to beat inflation last year as a higher rate tax payer was to invest in my S&S ISA which gave a net 8.5% return but only after taking higher risk.

gt94sss2

Well, I've decided to join the club and have applied for some certificates.

Does anyone know how long NS&I are taking to reserve the funds from current accounts, if one applies online?

I see Nationwide are now complaining how 'unfair' i is for NS&I to compete with them for savers - though I don't see Nationwide raising their rates!

Regards
Sunil

noh

I applied online in the early hours of Wednesday 25th May.
The money was reserved later the same day.
It was taken from my account on the 26th.

adindas

Hi Noh and All
How do we know that the money was reserved ?
I applied online early this week and the money still sit on my vantage current a/c. I have not noticed any change

noh wrote: »

I applied online in the early hours of a weekday. The money was reserved later the same day.

lisyloo

I applied online early his week

Are you a new customer?
If so don't worry chances are your certificate will be backdated to the date of application.

How do we know that the money was reserved ?

Some on-line interfaces show it.

le_loup

lisyloo wrote: »

If so don't worry chances are your certificate will be backdated to the date of application.

Not chance, it WILL be backdated.