NS&I certificates

homerhotspur

gndalph wrote: »

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.

I am in the above position. Has anyone received an actual certificate yet or know how long to expect after the money taken?

Arcaine

homerhotspur wrote: »

I am in the above position. Has anyone received an actual certificate yet or know how long to expect after the money taken?

I have literally just put the application in 5 mins ago. So well let you know how long it takes to come through. I have never had NS&I products before so no doubt I have to send address details etc.

JohnB47

Two simple questions, please, for someone who hasn't got all the readies to hand yet (fixed rate ISA maturing soon):

1. Do you have to have all the money ready to invest, just once, in a certificate or can you add to it once opened?

2. Can you open more than one certificate (of the same type)?

i.e if you have £500 ready now and £6000 ready in a month or so, can you open one now for £500 and add the £6000 to it later? Or can you open one for £500 now and open another for £6000 later?

Thanks.

bigfreddiel

JohnB47 wrote: »

Two simple questions, please, for someone who hasn't got all the readies to hand yet (fixed rate ISA maturing soon):

1. Do you have to have all the money ready to invest, just once, in a certificate or can you add to it once opened?

2. Can you open more than one certificate (of the same type)?

i.e if you have £500 ready now and £6000 ready in a month or so, can you open one now for £500 and add the £6000 to it later? Or can you open one for £500 now and open another for £6000 later?

Thanks.

you can buy in £100 chunks all the way up to 150 £100 chunks in one hit - the former would be a sort of drip feed process.

JohnB47

bigfreddiel wrote: »

you can buy in £100 chunks all the way up to 150 £100 chunks in one hit - the former would be a sort of drip feed process.

Thank you.

JohnB47

I've just read the fine print about returns and I'm thinking that people may believe that they'll be getting each months RPI figure + 0.5% on their investment over the 5 year period, starting with the month they invest. So they think they'll be earning 5.7% straight away (just as if they'd taken out a variable rate ISA that pays out RPI plus 0.5%). I don't think that's correct.

Lets see if I understand this correctly. If I invest in June, my interest rate (applied to the capital in June 2012) will be calculated as the RPI figure that reflects the increase in prices between April this year and April 2012. i.e it will be the April 2012 RPI figure. So RPI could stay around 5% for most of that time (or even increase) but if it drops in April 2012 to, say 2%, then I'll get 2.5% interest for the year. It could rocket to 10% between now and April 2012 and then drop to 1% in April 2012 and I'll get 1.5% interest for that year.

Correct?

Arcaine

JohnB47 wrote: »

I've just read the fine print about returns and I'm thinking that people may believe that they'll be getting each months RPI figure + 0.5% on their investment over the 5 year period, starting with the month they invest. So they think they'll be earning 5.7% straight away (just as if they'd taken out a variable rate ISA that pays out RPI plus 0.5%). I don't think that's correct.

Lets see if I understand this correctly. If I invest in June, my interest rate (applied to the capital in June 2012) will be calculated as the RPI figure that reflects the increase in prices between April this year and April 2012. i.e it will be the April 2012 RPI figure. So RPI could stay around 5% for most of that time (or even increase) but if it drops in April 2012 to, say 2%, then I'll get 2.5% interest for the year. It could rocket to 10% between now and April 2012 and then drop to 1% in April 2012 and I'll get 1.5% interest for that year.

Correct?

Correct the only thing that matters is the RPI on the Anniversary dates, what happens in between doesn't matter.

le_loup

... and the monthly RPI if you cash in early after the first anniversary.

JohnB47

le_loup wrote: »

... and the monthly RPI if you cash in early after the first anniversary.

Can you expand on that? The NS&I site says this in the 'cashing in' section:

"Between anniversary dates

We’ll pay you the most recent anniversary value plus any positive index-linking and fixed interest for each complete month since then.
If the RPI figure has gone down since the previous anniversary, you will still receive the full anniversary value plus fixed interest for each complete month."

le_loup

So, in that scenario, you get the last anniversary interest + RPI AND the interest since the last anniversary + RPI for the month you cash in. (More or less because the RPI will be for the 2 month prior to that.