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

lisyloo

In any case, though, the USP of these NS&I products isn't an unbeatable rate

For tax payers with full ISAs then it's quite hard to beat.

Will anybody admit to rushing to buy some today whilst stocks last?

I will be discussing it with my husband ASAP, but I don't personally think "rushing out" is a good idea.

arjar

I think you'll find that RPI went negative from March to October 2009

ztkr

MarkFromMullion wrote: »

I don't think the retail prices index has ever fallen, although it could in theory. It just goes up more slowly sometimes.

Hmm, I think it's obvious that I mean the rate of increase in RPI; not RPI itself. Nobody is expecting it to fall (ie. deflation to occur) right now.

Two9A

To be fair, I've "rushed out" to get my application in. RPI+anything is a lot better than my ISA's doing right now; if the ISA is doing better next year, I'll pull these certificates out when the anniversary payment is locked.

No downside, as far as I can tell.

Old_Slaphead

oldvicar wrote: »

Will anybody admit to rushing to buy some today whilst stocks last?

I hope they'll still be around when my government guaranteed 3-yr 6.95% pa fixed Northern Rock bond matures (August I think)

Wouldn't bank on it. I would have thought that this will be available for several weeks but not several months.

Consumerist

Might be a good home for money currently in Lloyds Vantage accounts if still available from 27 June.

wriggly

I will be waiting till next Tuesday, when the new RPI figures come out. If the index is higher, I will buy then to get the March index as my starting point. If it is lower, I will wait till 1 June to get the April index as my starting point.

Hopefully, "sustained period" includes at least the beginning of June!

Consumerist

wriggly wrote: »

If the index is higher, . . .

If the index is lower I'll eat my hat :rotfl:.

kar999

wriggly wrote: »

I will be waiting till next Tuesday, when the new RPI figures come out. If the index is higher, I will buy then to get the March index as my starting point. If it is lower, I will wait till 1 June to get the April index as my starting point.

Hopefully, "sustained period" includes at least the beginning of June!

"When banks and building societies admit they 'can't compete' with NS&I's inflation linkage, as Nationwide's director of savings Robin Bailey told me, you know you're on to a winner.

In fact, the banks are pretty scared that NS&I will now hoover up most of savers spare cash because the Government is allowing its savings arm to take in £2bn by April 2012.**
That's one of the reasons savings rates have jumped recently."

** Note that £2bn wont be just these certificates....

But how much, exactly, are they going to offer, and when? Like many others, I misunderstood the Press (e.g. the Guardian) as saying that £2 billion would be on sale; but NS&I’s release (23.03.2011) merely states that the target for the total funds they manage, spread over all their products, is an increase of £2 billion.

Rollinghome

wriggly wrote: »

I will be waiting till next Tuesday, when the new RPI figures come out. If the index is higher, I will buy then to get the March index as my starting point. If it is lower, I will wait till 1 June to get the April index as my starting point.

Hopefully, "sustained period" includes at least the beginning of June!

Although I believe if you waited till the end of June you'd still get the same indexation without them having your money for free for a month and you'd then know the figure for May.