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

lisyloo

In about a week's time, I wouldn't be surprised to see people complaining that they got ripped off, expecting 5.8%, but RPI has fallen to 4.5% in one month.

4.5% is still a very good rate, especially if you have used your full ISA allowance.
But if does all come down to your view of future RPI.
I'm planning on piling in as soon as I can - which unfortunately is not right now as my job is at risk :-(

Rollinghome

lisyloo wrote: »

But if does all come down to your view of future RPI.

And of other savings rates, and of the return on alternative investments, and your tax position.

So if you'd prefer to be in cash over the next year and the current best 1yr fix is 3.5%, a basic rate tax payer will need inflation to be over about 2.6% by then and for a hr payer over about 1.9% or so to make the IL bonds the better bet. No interest if you cash in within the first year.

lisyloo

And of other savings rates, and of the return on alternative investments, and your tax position.

Yes, correct - thanks.
I personally don't think BOE, RPI or savings rates will move significantly.

I am happy to look at it as a 12 month deal.
I have 3 other NSI certs that are out of their 12 month minimum period, so if I did need access I would cash in the older ones.

Stompa

Am I correct in thinking that if you cash in your certicates early you have to encash the full amount?

And, if so, are you able to have multiple certificates of the same issue (totalling <=£15k)?

JonM1

I've got a quick question about these certificates... if I invest the minimum £100 to start, can I then invest more at a later date? Or is it a one-off investment?

missile

Perfect timing:kisses:. A home for funds in excess of £5,000 from my LTSB Vantage accounts. I feel sure RPI is going to soar over the next 5 years.

Link to the new issue > http://www.nsandi.com/savings-index-linked-savings-certificates?ccd=NEELBA

I have only read the last page. My appologies if it has been posted on the other 3 pages which I have not read.:lovethoug

Rollinghome

lisyloo wrote: »

Yes, correct - thanks.
I personally don't think BOE, RPI or savings rates will move significantly.

I don't think they'd want RPI at current levels in a year's time but would be very surprised to see them below the break-even point too. After that it's anyone's guess.

lisyloo wrote: »

I am happy to look at it as a 12 month deal.
I have 3 other NSI certs that are out of their 12 month minimum period, so if I did need access I would cash in the older ones.

Although depending on how long you've had them you'll be getting a higher rate of interest on them presumably. Might need some sums doing.

Rollinghome

Stompa wrote: »

Am I correct in thinking that if you cash in your certicates early you have to encash the full amount?

And, if so, are you able to have multiple certificates of the same issue (totalling <=£15k)?

You can.

JonM1 wrote: »

I've got a quick question about these certificates... if I invest the minimum £100 to start, can I then invest more at a later date? Or is it a one-off investment?

No, you can keep investing as long as the issue is open or reach £15K. Then put more in any new issue.

missile

JonM1 wrote: »

I've got a quick question about these certificates... if I invest the minimum £100 to start, can I then invest more at a later date? Or is it a one-off investment?

You cannot add to your savings, but you buy more than one certificate up to the maximum £15,000.
You might want to read this> http://www.nsandi.com/savings-index-linked-savings-certificates?ccd=NEELBA

snooping_around

...........