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

whu

If I took out a certificate in May 2010 will the comparison be with May 2011 or April 2011?

chris1

whu wrote: »

If I took out a certificate in May 2010 will the comparison be with May 2011 or April 2011?

March 2011 (compared to March 2010).

Consumerist

pocketstrings wrote: »

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

See post #119.

Edit
ILCs are not, strictly speaking, an account; they are certificates which you can purchase up to a total holding of £15k in any one issue (so far, anyway). It's a bit like holding share certificates.

bertsilver

I have 15k in a Halifax Web Saver Extra which gets 2.50%, should I leave it there or put it in the NS&I?

Consumerist

bertsilver wrote: »

I have 15k in a Halifax Web Saver Extra which gets 2.50%, should I leave it there or put it in the NS&I?

2.5% pa gross is equivalent to 2.0% pa net to a basic-rate taxpayer so if you think inflation is likely to be higher that 2.0% pa over the next 5 years then ILCs will give you a better return. If you think net savings rates are likely to be better than inflation in the next 5 years then stay in savings. You could, however, cash in after the first year of an ILC and put the money back in savings. So you can hedge your bet with an ILC.

bertsilver

Consumerist wrote: »

2.5% pa gross is equivalent to 2.0% pa net to a basic-rate taxpayer so if you think inflation is likely to be higher that 2.0% pa over the next 5 years then ILCs are giving you a better return at the moment. If you think net savings rates are likely to be better than inflation in the next 5 years then you can cash in after the first year of an ILC and put the money back in savings.

I am a non taxpayer if that makes any difference.

Consumerist

bertsilver wrote: »

I am a non taxpayer if that makes any difference.

See post #119. While (RPI) inflation remains above 2.5% pa you will be better off with an ILC - unless, of course, gross savings rates become higher than inflation during the 5 years.

whu

chris1 wrote: »

March 2011 (compared to March 2010).

I took one out in May 2010 so will have to wait until the May figure comes out for 2011 - thanks.

noh

whu wrote: »

I took one out in May 2010 so will have to wait until the May figure comes out for 2011 - thanks.

No you need the March figures as stated by chris1
These were published in April.

bertsilver

Consumerist wrote: »

See post #119. While (RPI) inflation remains above 2.5% pa you will be better off with an ILC - unless, of course, gross savings rates become higher than inflation during the 5 years.

Might be a bit thick, what is a ILC?