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

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GingerFurball_2

missile wrote: »

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

So if I invested more than once would each certificate mature individually in 5 years or would the investment be lumped together and all mature at the same rate?

kar999

I suspect a significant amount of £2k lumps of Lloyds Vantage account money will be heading this way come the end of June.

dtsazza

I wouldn't be at all surprised if the issue is closed by the start of June, never mind the end...

Rollinghome

GingerFurball wrote: »

So if I invested more than once would each certificate mature individually in 5 years or would the investment be lumped together and all mature at the same rate?

They'll be treated as separate investments. Think of it like a building society passbook. But instead of recording each payment in a book they give you a separate piece of paper, the certificate, for each transaction that you'll need to send them when you want your lolly back. Each payment finally matures 5 years after you pay it in but can be reinvested.

If the cost of living has gone up by say 3% in 1 years time, as measured by the RPI, you'll earn 3% plus the extra 0.25% bit, all tax free.

kar999

Sounds like a good plan. If I take this offer up I will probably have 3 x £5k certificates then I can always cash just one in to transfer to an ISA etc. if a better prospect appears.

Doc_N

kar999 wrote: »

Sounds like a good plan. If I take this offer up I will probably have 3 x £5k certificates then I can always cash just one in to transfer to an ISA etc. if a better prospect appears.

No need to do that. You can do partial withdrawals from one £15,000 certificate that will achieve exactly the same outcome.

JoeCrystal

I am bit miffed since I just put most of my savings into Cash ISA yesterday (earning 3% interest). However. I decided to put half of my Emergency Fund (joining other half from 2009) into it today since it would keep (hopefully) it value over next five year. And of course, it is tax-free.

The very fact you can cash it in short notice is very useful!

Cheers

Joe

missile

JoeCrystal wrote: »

The very fact you can cash it in short notice is very useful!

Please bear in mind this is a good option:T but it is not a good savings product if you think you will be unlikely to hold for the full term. You will only get your money back if you cash in during year1:eek:.

poppy10_2

0.5% is pretty lame, I still have my 5-year certificates paying RPI+1.35%. Lucky I got in on time.