NS&I certificates

Brat_62

portchieboy wrote: »

Do I have this wrong???

I read that the interest paid was the difference in RPI each year.

So, if yr 1, it started at 4%, then 12 mths later was 3%, you only get paid 0.25%.

Same calc cumulative each year. So, you don't get paid lterally RPI plus bonus, if RPI drops (currently high), it may be pretty rubbish.

If I have that wrong, can someone please explain!

Ta

I think you have that exactly right.
The NS&I site says:-
How we calculate your returns




The return you earn is made up of two parts – fixed interest and any positive index-linking – which we add on each anniversary of your investment.
We calculate the index-linking by using the RPI figures that apply to your Certificate at the start and end of each year of investment (not the monthly changes in between). If the index-linking is positive – ie if the RPI end level is higher than the RPI start level – then we add it to your investment. If the index-linking is negative (known as ‘deflation’) you won’t receive any index-linking. But don’t worry, we won’t reduce the value of your investment.

Sceptic001

Brat_62 wrote: »

I think you have that exactly right.

No, portchieboy has it WRONG. Read the subsequent posts or this thread starting at post #8.

Baalmaiden

THe NSI site says you can save up to £15000. Can husband and wife each invest that amount? And what if you get them in joint names?

le_loup

Joint names £15K Single names £15K each.

MarkyMarkD

Baldur wrote: »

Haven't looked at the YBS account but the KRBS ISA, unlike the NS&I product, does not permit early access (other than transfer to a different ISA provider, when it will only return the original amount deposited with no interest).


<Edit> Having had a quick look at the YBS product, both it and the KRBS 2% and 1.5% figures are not the AER but the total gross percentage interest earned over the 5 year period (YBS 0.29% AER; KRBS 0.39% AER).

The YBS product is far worse - it has undefined early exit penalties. How can you buy something without knowing what the terms are?

Early encashment of the Plan following the 14 day cancellation period will result in an Early Exit Fee** and so you may get back less than you initially invested.

** The asterisks don't link to an explanation or quantification of the Early Exit Fee - they just say that it doesn't apply if you die.

silps

When applying for this, it asks for your debit card details. So do you have to tell them the amount you want to invest on the form and have that amount ready in your current account to be debited as soon as the application is approved?

gndalph

silps wrote: »

When applying for this, it asks for your debit card details. So do you have to tell them the amount you want to invest on the form and have that amount ready in your current account to be debited as soon as the application is approved?

Yes you do, the money was taken from my account about 4 days after my application, BUT before I received any communication from them at all apart from the intitial email acknowledging receipt of the application.

They do also warn you that the money must be in your account ready when you apply or you risk the application not going through.

Oblivion

I've not dabbled in savings certificates before. I can see that the minimum purchase is £100, and the maximum is £15,000.

What I'm not clear about is whether I can purchase say £5000 now and then purchase further amounts in subsequent months up to the £15,000 max. Can someone clarify please.

Stompa

Oblivion wrote: »

What I'm not clear about is whether I can purchase say £5000 now and then purchase further amounts in subsequent months up to the £15,000 max. Can someone clarify please.

Providing they continue to remain available, then yes you can. But the rumour mill suggests they may not remain available for all that long.

lisyloo

Yes, you can purchase it in chuncks subject to a minimum of £100 (and them being available of course).
Traditionally there has been a new issue about every 3 months, so you might find you don't even reach the max before there is another issue.