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

oldvicar

ANGLICANPAT wrote: »

Unless the application forms are pre-dated for a particular month , perhaps you can grab the application form/s now, hoping that protects you from missing out if the offer is withdrawn suddenly , but then wait and choose your moment for sending it off, as you described?

Geting the forms now only works if you can post them the day before they go off sale. They were effectively instantly withdrawn last year. NS&I have said they expect them to be on sale for a good while, but if you want them it may be best to get them whilst stocks last. Online is probably the most certain way.

kar999

Alon2wheels wrote: »

What are the choices? I would appreciate to know what others think.
1. Mobilize cash Isa money into latest NS & I. May result in (slightly) higher returns?
2. Or risk Stocks and Shares ISA - higher/unpredictable/riskier?
I must admit I missed the previous certificate issue because of indecision.

My strategy for what it is worth....

I didnt bother with Cash ISA in 2010-11 but put all £10.2k into S&S ISA as the best rates for cash ISA's were c.5% but meant locking away for 5 years. My S&S ISA's gave me 8.5% tax free year on year from April 2010 to April 2011 and growth has accelerated significantly so far this tax year.

I've just bought £15k of these tonight as a tax-free cash hedge against inflation and because there is a get out clause (albeit at lower rates). I will probaly go for only S&S ISA's again this year unless rates/fixed terms improve.

Obviously S&S ISA's are more risk prone.

TREVORCOLMAN

It is intersting that the government have been bleating on for months that CPI is the best measure of inflation. So why are they using RPI for these products?

Of course they use CPI so they pay lower increases and RPI when it suits them!

Masomnia

TREVORCOLMAN wrote: »

It is intersting that the government have been bleating on for months that CPI is the best measure of inflation. So why are they using RPI for these products?

Of course they use CPI so they pay lower increases and RPI when it suits them!

My guess is that it's because the government still auctions debt linked to RPI, which would be very expensive to change and would probably cause problems in the market.

Since CPI tends to be lower it would be advantageous for the government to use CPI, so we should be pleased that they're sticking to RPI!

billieboy_2

PParka wrote: »

It depends how much you have to save.
Personally, I would use it a part of a portfolio of savings and investments, but not put everything in (just in case )

I'm going for the 3 x £1000 option.
My current 3 year ILSC at RPI + 1% seems to be doing OK.

Can you add to it after initial investment? I've got a lump sum coming my way but won't get it for about a month and was thinking of opening one sooner rather than later in case it's pulled. Can't see anything on the NS&I website.

maypole

Consumerist wrote: »

If you prefer to just forget about them and be sure that the real value will at least be maintained then they may be just what you need.

If, however, you want to maximise your return when interest rates may be about to rise then you really need to understand when interest rates are not keeping pace with inflation.

From what you have said, they may be a good idea for you.

Thanks again for that

androidpower

I have just played with the interest calculator on the ns&i website.

http://www.nsandi.com/savings-index-linked-savings-certificates

It seems there is no difference in returns if you sumbit your investment on the first day of the month, or on the last day of the month. The interest amount is the same. If that is the case I think I will wait until 30th May to submit my application.

It would be great if someone can clarify. Thanks.

kar999

Bought the max last night. Anyine know if they take the money out before they receive the signed application back? If so, I dont really want £15k sitting in my current account earning Rockall during the turnaround time.

Their helpline number is always engaged.

Thanks,

KTF

I also bought some last night and the payment was taken today.

veryintrigued

billieboy wrote: »

Can you add to it after initial investment? I've got a lump sum coming my way but won't get it for about a month and was thinking of opening one sooner rather than later in case it's pulled. Can't see anything on the NS&I website.

I have the same issue - looking to 'open' one of these as soon as I can i.e. this week-end and then 'add' some more funds late next week.