NS&I certificates

kidmugsy

"I would prefer a preferential system to offer index linked certificates to protect pensioners savings as first priority, ... But difficult to administer such a system": not really - when ILSCs first appeared they were for pensioners. That's why they were nicknamed "Granny Bonds".

masonic

kidmugsy wrote: »

"I would prefer a preferential system to offer index linked certificates to protect pensioners savings as first priority, ... But difficult to administer such a system": not really - when ILSCs first appeared they were for pensioners. That's why they were nicknamed "Granny Bonds".

I would have thought pensioners tend to look for a product paying out a regular income, which ILSCs don't. If the money pensioners would be locking away in ILSCs is not needed by them to generate retirement income, perhaps they are wealthy enough in retirement not to need special treatement?

lisyloo

I would have thought pensioners tend to look for a product paying out a regular income, which ILSCs don't.

Not necessarily.
Some of them live off their pensions/benefits and dip into their savings for capital e.g. a holiday, home improvements etc.

If the money pensioners would be locking away in ILSCs is not needed by them to generate retirement income, perhaps they are wealthy enough in retirement not to need special treatement?

I don't agree with the first part, but agree with the second :-)
Just cos you have a "few grand" tucked away for a rainy day doesn't really make you wealthy.

Older people already get loads of special treatment e.g. free transport, free TV licence, winter heating allowance.
What do younger people get? Long term unemployment, no opportunities, huge debts if they want to study.

I don't have any axe to grind either way as I'm neither young nor old, but it seems to mean older people have generally got a good standard of living, compared with what we face in future.

JamesU

MarkyMarkD wrote: »

But NS&I are offering these to raise money, not as the imagined "way to give savers a good return" that some are saying.

As I've pointed out before, NS&I's interest is coming straight out of taxpayers' pockets. If they pay too much - and they are doing, by offering equivalent rates for higher rate tax payers of well over 10% - then that is taxpayers' money being wasted in the form of a subsidy to higher rate taxpayers.

Agreed. Seems silly to subsidise 40% taxpayers savings by offering them index linked certificates, particularly given we already have higher rate pension tax relief, costing around £5 billion/yr at a guess, and which benefits a minority of the population.

Did not realise we had granny bonds before though, good point from Kidmusgsy, had to get up to speed with index linked certificates a year or so ago, but had not really looked at them prior to that. So there is indeed past precedent for protecting savings for the retired preferentially.

Guess it then comes down to what is justifiable regarding any preferential eligibility for index linked certificates. Presumably, the retired have a greater need for their savings to be protected as they no longer have the level of wealth creation enjoyed when working, and obviously need lower savings and investment risk in retirement. But as Masonic mentions, where do you draw the line on when the retired are wealthy and should not be given preferential treatment? As the retired still incur tax liabilities, perhaps the tax system in place takes care of that automatically, so this may not be an issue.

JamesU

molerat

molerat wrote: »

Applied 31 May, signature letter arrived 4 Jun so just waiting for the certificate now. Hope it will be soon as a fixed rate is ending 12th so funds should be in my account shortly after for another one.

Received the cert today so 15 days start to finish.

onlyroz

Just put in my application.

le_loup

onlyroz wrote: »

Just put in my application.

Wow! ..........

northernstar5

I applied online on 21st May and still not received anything.

I've phoned twice and been given 2 completely different versions.

Already have some certificates from before - does this mean they don't need a sample signature?

RobStaffs

They are pretty slow in turning them around.Money was taken out of my bank on 18th May for 1st batch of £15k.Only received my cert on 13th June.However my certificate is dated 18th May.Money was taken out of account last Monday for my wife's certificates .She received the form to sign yesterday so maybe they will turn this one around a bit quicker

le_loup

northernstar5 wrote: »

I applied online on 21st May and still not received anything.

I've phoned twice and been given 2 completely different versions.

Already have some certificates from before - does this mean they don't need a sample signature?

If you quoted the number correctly, you do not need to provide a signature (you did that for the first lot). However, my experience is that for 10 different certificates for two different people, the new certs arrived in about a week.
I think you may have a problem.