MSE News: NS&I revives inflation-beating savings certificates

adindas

Where to get info the fixed interest after yr1, yr2, y3, ... yr5 then ?

Consumerist wrote: »

You've got the right idea but the 0.5% (overall) fixed interest is not the same each year. So, in the case you cite, you would get the 4.3% indexation plus whatever the fixed interest is for that particular year.

lisyloo

You could look at the NSI site

http://www.nsandi.com/savings-current-interest-rates-year-year-rates

Purchase price + index-linking for year 1+ 0.25% of purchase price
= 1st anniversary value
1st anniversary value + index-linking for year 2 + 0.35% of 1st anniversary value
= 2nd anniversary value
2nd anniversary value + index-linking for year 3 + 0.40% of 2nd anniversary value
= 3rd anniversary value
3rd anniversary value + index-linking for year 4 + 0.65% of 3rd anniversary value
= 4th anniversary value
4th anniversary value + index-linking for year 5 + 0.86% of 4th anniversary value
= maturity value

pocketstrings

would other posters say this account is worth it even if you are not a tax payer?

pocketstrings

ps because it seems inflation is about 4.4% and i don't know any low-risk, can-be-accessed-if necessary savings accounts offering 4.4%...

lisyloo

would other posters say this account is worth it even if you are not a tax payer?

Yes from me.
I don't believe you will get as high a rate elsewhere although you have to bear in mind that future RPI is unknown.

because it seems inflation is about 4.4%

No, no, no.
I think you are looking at the CPI figure for inflation.
These certificates are based on RPI which at the moment is higher than that.

No-ne can give you a guarnatee though, there is a risk involved on the return (not on the capital).

pocketstrings

yes, you're right i was making the classic RPI CPI mistake! thanks for your post. i am fairly new to all this financial malarkey - i'm using this site to try to educate myself a bit. :eek:

lisyloo

i'm using this site to try to educate myself a bit

Keep going, there's tons of useful info here :-)

dqnet

So is anyone taking these prdocus on?

pocketstrings

i am. seems like you can't lose really.

JamesU

pocketstrings wrote: »

yes, you're right i was making the classic RPI CPI mistake! thanks for your post. i am fairly new to all this financial malarkey - i'm using this site to try to educate myself a bit.

The link below was posted last year and is more user-friendly than ONS for accessing RPI and %RPI data. Worth a look for those interested.

JamesU

http://www3.hants.gov.uk/finance/retailpricesindexandconsumerpriceindex.htm