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

Biggles

So much for 'Register your email address if you want us to let you know when ILSCs are back on sale'.

Usual hopeless administration at NS&I!

Pinner_Ram

you'll receive your news email from NS&I to alert you to the fact that ILSCs are now back on sale soon, ........... just before the one telling you that due to unprecedented demand they are now being taken off sale again.

;-(

PR

Biggles

Pinner_Ram wrote: »

you'll receive your news email from NS&I to alert you to the fact that ILSCs are now back on sale soon, ........... just before the one telling you that due to unprecedented demand they are now being taken off sale again.

I'm glad at your certainty that they will arrive in that order, PR. I'm not so sure.....

Stompa

wriggly wrote: »

Two caveats I see with more perusal:
1. The non-indexed interest rate starts at a very low 0.05%, and stays low until the last two years. This seems a more "exponential" rise than previous issues, which punishes early withdrawals more.

It's low, but not quite that low surely?

http://www.nsandi.com/savings-current-interest-rates-year-year-rates

says:

Year 1 = RPI + 0.25%
Year 2 = RPI + 0.35%
Year 3 = RPI + 0.40%
Year 4 = RPI + 0.65%
Year 5 = RPI + 0.86%

but yes, that's clearly intended to discourage early encashment.

gadgetmind

I just got my email from NS&I at 9:59am.

wriggly

Stompa wrote: »

It's low, but not quite that low surely?

D'oh! I was caught out by the illustration used in the FAQ section, where the rates are: RPI + 0.05%, 0.07%, 0.10%, 0.30%, 0.71%.

I think I'll stop posting before 9am.

C_Mababejive

Is it worth it?? Seems pretty rubbish to me.

Noggin_the_Tog

The media are all giving the impression that the new index linked investment is ALL of RPI + 0.5% ie 5% ++

WRONG!!

The return is the growth in RPI index from 2 months before the purchase date, to the index on the anniversary date.
In their own example, year 1 is only 2.38% (+ 0.5%)

If the index drops, you get nothing (well only the + 0.5% bit)

Mr_K

C_Mababejive wrote: »

Is it worth it?? Seems pretty rubbish to me.

Tax free, government protected, protected from inflation and plus a smidgen more. Much more than you'll get from any savings account at the moment. The only way you'll lose (slightly) is if you need to cash in in the first year.

Stochasticity

Mr_K wrote: »

Tax free, government protected, protected from inflation and plus a smidgen more. Much more than you'll get from any savings account at the moment. The only way you'll lose (slightly) is if you need to cash in in the first year.

Or if inflation abates and you'd have been significantly better off in fixed rate savings.