NS&I certificates

lisyloo

what are most people envisaging for this investment ? Have you all got it diaried for 1 year, and 'look at it then'/take the RPI + 0.25% ?

Well mine is to pay off my mortgage.
I am lucky to have a mortgage rate of 0.99% but when interest rate rise to the point that the NSI is no making a "profit" then I will withdraw and pay off.
Hopefully I will stop investing 12 months before that point.
So mine is really a "stooze" against a mortgage.

jennifernil

jennifernil wrote: »

We did exactly the same, and it has all gone very well so far.

Applied late evening 25/06.
Money taken 29/06
Signature letter received and returned today (30/06)

I can now add......

Certificate arrived 07/07

RobStaffs

A lot of commentators think the current level of inflation will remain for longer that the many believe.Hence there is a bit of criticism coming the way of the decision to hold interest rates at 0.5%. NSI ILC'a are are really good option at the moment,

Ark_Welder

What is interesting is the fact the IL certificates are still available. Many commentators thought that the issue would be closed 'within weeks', but it is still open a month later. NS&I web-site also states that they expect it to be on sale 'for a sustained period of time'.

So they might not be achieving the level of business originally expected, or they are raking it in and see it as a source of cheap funding - which would only be the case if RPI goes lower and stays there.

masonic

Ark_Welder wrote: »

What is interesting is the fact the IL certificates are still available. Many commentators thought that the issue would be closed 'within weeks', but it is still open a month later. NS&I web-site also states that they expect it to be on sale 'for a sustained period of time'.

So they might not be achieving the level of business originally expected, or they are raking it in and see it as a source of cheap funding - which would only be the case if RPI goes lower and stays there.

It could just be that the general population is skint because of the recession and high inflation.

Sceptic001

Ark_Welder wrote: »

What is interesting is the fact the IL certificates are still available. Many commentators thought that the issue would be closed 'within weeks', but it is still open a month later. NS&I web-site also states that they expect it to be on sale 'for a sustained period of time'.

So they might not be achieving the level of business originally expected...

Or they know that a large volume of fixed-rate bonds are maturing this year which will counteract the inflow from ILSCs...

Ark_Welder wrote: »

...or they are raking it in and see it as a source of cheap funding - which would only be the case if RPI goes lower and stays there.

We wish... Surely they are not naive enough to believe Bank of England projections? :mad:

veryintrigued

'Unexpected' drop in CPI (not RPI) reported today

http://www.bbc.co.uk/news/business-14119532

Masomnia

You'll go mad if you keep watching the inflation figures every month!

theapplefell

The RPI figure for May and June remained constant at 235.2 so no interest will be added for that time period.

Masomnia

theapplefell wrote: »

The RPI figure for May and June remained constant at 235.2 so no interest will be added for that time period.

You'll get a little bit for the fixed interest component, but it's negligible.

They're not designed as a short term (in savings terms) product, so it's a bit pointless looking at the changes every month. Having said that, it does look like inflation really is slowing.