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

noh

JamesU wrote: »

Out of curiosity, what happens if you buy say three £5K ILCs for the issue, sell one £5K (e.g. emergency boiler change) and then save up £5K and want to reinvest in the issue while it is still on sale (£15K and part encashment of £5K possible of course, just splitting things for the example here). Is taking out £5K and then putting it back into the same issue allowed? or have you "used up" you £15K allowance for that issue until a new issue becomes available? NSI suggest they want the ILCs on sale for a sustained period (anybody's guess for how long really though) but that does not mean they will be promoting further issues. If the flexibility discussed above exists, that could be interesting for OPs to know regarding savings flexibility.

JamesU

Yes you can do that. It is the maximum holding that is limited not the total subscription as in the case of ISAs.

From the T+Cs accessible from this page:-
http://www.nsandi.com/savings-index-linked-savings-certificates

"41. An applicant may not apply to purchase a Certificate of any Issue if immediately after that purchase the holder would hold, either solely or jointly with any other person, more than £15,000 in Certificates (at purchase price) of that Issue.."

kar999

adindas wrote: »

Based on historical data. How long will it take until sold out or withdrawn.
Will it be more than two months ? ..

According to an article in the Financial Times it could be just a matter of weeks before they sell out....

Savers have been advised to act quickly if they hope to take advantage of a new inflation-beating savings account.
Brokers say the tax-free, index-linked certificates reissued this week by National Savings & Investments (NS&I), the government’s savings arm, could sell out “in weeks”.

Fears of huge demand for the new certificate issue has forced NS&I to limit their sale to applications online, by post and over the telephone, rather than in Post Offices.

Patrick Connolly at AWD Chase de Vere said savers should invest sooner rather than later. “There is a risk that the products may not be around for too long,” he said. “Demand may exceed supply.”

Extract credit ft.com.. full article.
http://www.ft.com/cms/s/2/52004848-7d86-11e0-b418-00144feabdc0.html#ixzz1N1h7GnAu

Rollinghome

kar999 wrote: »

According to an article in the Financial Times it could be just a matter of weeks before they sell out....

Savers have been advised to act quickly if they hope to take advantage of a new inflation-beating savings account.
Brokers say the tax-free, index-linked certificates reissued this week by National Savings & Investments (NS&I), the government’s savings arm, could sell out “in weeks”.

But then in the same article they also say: "Higher-rate taxpayers would need to find returns of above 9.67 per cent gross from an ordinary taxable account to match the certificates, according to Danny Cox at Hargreaves Lansdown" which is rubbish unless the rate of inflation over the next year turns out to be identical to the past year.

NS&I have repeatedly said they'll be available for a "sustained period" and while it's possible they've made a miscalculation would cause them major embarrassment if it was well short of that. They haven't seen the need to update or modify their statement so far.

Seems to be just another free rent-a-quote from a couple of companies who need the publicity and your guess is probably as good as theirs.

Danny Cox was a green-grocer before he became an insurance salesman and I'd be more inclined to trust him on choosing a nice cabbage than on predicting the intentions of NS&I. http://www.moneymarketing.co.uk/analysis/danny-cox/116449.article

cke123

Slackermum wrote: »

Same thing has happened to us. They were unable to help when we did get through, we were put back on hold, after we were told we'd be straight through to someone who would help. 30 mins later we were still waiting, but had to go out!

I'll let you know how we get on.

I have asked a few friends whether they have had their applications rejected because they got their holder's number wrong. So far 4 out of 6 applications made on-line by people I know have been rejected for this reason. When I phoned the help line (as advised at the bottom of the mail from NS&I) they could find no record of my application on their system.

I wonder whether the NS&I system has been overloaded.

lisyloo

A lot of people are using their premium bind holders number by mistake and it's not that number.

Yes, they do seem to be very busy.

JoeCrystal

For one, I would love to know just how many people bought Index-Linked Savings Certificates... Still waiting here as my application is going by mail

ffacoffipawb

JoeCrystal wrote: »

For one, I would love to know just how many people bought Index-Linked Savings Certificates... Still waiting here as my application is going by mail

Bought £15k online on 13/05/2011.

Money deducted from account by debit card a few days later.

Certificate arrived yesterday (21/05/2011) with an initial investment date of 14/05/2011, the day after purchase.

Nice home for my ex-Lloyds Vantage money. Thanks Lloyds for reducing the interest rate from 4% to 3% (wef June 2011) which forced me to review my cash holdings.

PS: already an existing customer of a Nov 2008 holding (3yr RPI + 1%) which may have speeded up the process. This will be reinvested in 6 months.

adindas

Hi Guys
Thank you for sharing your info
cheers
ADINDAS

kar999 wrote: »

According to an article in the Financial Times it could be just a matter of weeks before they sell out....

Savers have been advised to act quickly if they hope to take advantage of a new inflation-beating savings account.
Brokers say the tax-free, index-linked certificates reissued this week by National Savings & Investments (NS&I), the government’s savings arm, could sell out “in weeks”.

Fears of huge demand for the new certificate issue has forced NS&I to limit their sale to applications online, by post and over the telephone, rather than in Post Offices.

Patrick Connolly at AWD Chase de Vere said savers should invest sooner rather than later. “There is a risk that the products may not be around for too long,” he said. “Demand may exceed supply.”

Extract credit ft.com.. full article.
http://www.ft.com/cms/s/2/52004848-7d86-11e0-b418-00144feabdc0.html#ixzz1N1h7GnAu

Rollinghome wrote: »

But then in the same article they also say: "Higher-rate taxpayers would need to find returns of above 9.67 per cent gross from an ordinary taxable account to match the certificates, according to Danny Cox at Hargreaves Lansdown" which is rubbish unless the rate of inflation over the next year turns out to be identical to the past year.

NS&I have repeatedly said they'll be available for a "sustained period" and while it's possible they've made a miscalculation would cause them major embarrassment if it was well short of that. They haven't seen the need to update or modify their statement so far.

Seems to be just another free rent-a-quote from a couple of companies who need the publicity and your guess is probably as good as theirs.

Danny Cox was a green-grocer before he became an insurance salesman and I'd be more inclined to trust him on choosing a nice cabbage than on predicting the intentions of NS&I. http://www.moneymarketing.co.uk/analysis/danny-cox/116449.article

le_loup

ffacoffipawb wrote: »

with an initial investment date of 14/05/2011, the day after purchase.

Mine was dated on the day, not a day later.
They must have taken the extra day to check your political affiliations.

Distinction

If I put £15,000 into it and withdrew after one year and one day, will the interest earned be worthwhile?