NS&I certificates

dzug1

castle96 wrote: »

??? I dont get this...

193.40 minus 188.90 = 4.5% increase in RPI, x £10k = £450 surely, not £238.22

?

That's a 4.5 increase in the index - not a 4.5% increase

Divide 193.4 by 188.9, take away 1 and multiply by 100

castle96

yes of course. so easy to miss that (bet many people have). not looking such a good deal as I thought !

pressuredrop_2

castle96 wrote: »

not looking such a good deal as I thought !

Inflation (currently 5.2%) + 0.5% tax-free.

What's not to like?

castle96

"currently"

if there is a drop, at the next anniversary (ie the calc being 4/11 to 4/12), then all I get is 0.25% tax free. I must admit, I did not read/understand fully when I applied

lisyloo

if there is a drop, at the next anniversary (ie the calc being 4/11 to 4/12), then all I get is 0.25% tax free. I must admit, I did not read/understand fully when I applied

That's true, but you should also appreciate that if there is a drop then your money will still have increased in real terms.
If you are not happy then you can withdraw without penalty and if it a recent investment then you will have lost little by not having it saved/invested elsewhere.

Sceptic001

castle96 wrote: »

if there is a drop, at the next anniversary (ie the calc being 4/11 to 4/12), then all I get is 0.25% tax free. I must admit, I did not read/understand fully when I applied

OK, but given the information available now, what do you think are the odds of inflation turning negative (ie. a decline in prices) in the next twelve months?

le_loup

castle96 wrote: »

if there is a drop, at the next anniversary (ie the calc being 4/11 to 4/12), then all I get is 0.25%

Not a drop but a turn to negative.
If inflation drops from 5% now to 4% next year, you will get 4% + the interest.

JohnB47

le_loup wrote: »

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.

Thank you.

londoner1998

Primrose wrote: »

I think they operate in the same way as premium bonds in that respect - there's a minimum purchase but above that level you can buy in batches of any amount until you reach the maximum holding for that particular issue. If a new version comes out, you can start all over again and continue paying in until you reach the maximum £15K holding again.

Thank you- I purchased £100 and the money has gone out of my accoutn already, so I guess it is all good- how do I get to buy the next batch? Are they available every so often?
Do I just phone in or go on the site and do it all again? Sorry to be obtuse, but this is different to savings accounts...


Many thanks,

Ainhoa

Oblivion

A couple of observations ...

1.) I do find it odd that when applying online they warn you not to enter your NS&I user number. As a Premium Bond holder and having an NS&I ISA I am already registered with them.

Surely simply being able to enter your user number would speed up the on-line process no end since they already have all my details ... plus it would negate the need to ask for any identification.

2.) If like me you are going for the full £15,000 please remember that the banking code is that for online transactions your debit card is only good for a maximum daily limit of £10,000. Some banks or specific accounts may impose an even smaller daily maximum so you need to be sure what applies to you.

Because of this I've paid for £10,000 this morning and will try for a further £5,000 tomorrow morning. The clock is reset at midnight in the banking world as you might expect (it's not 24 hours from your last transaction).

The helpful HSBC customer services chap did say that if you make an application by phone and they take your debit card details over the phone, then the daily limit rises to £50,000. I tried phoning but gave up after a very long time. They are either very busy as the message says, or they don't have sufficient staff.