Inflation Linked Savings discussion area

le_loup

It may well be.

Stew969

Can anyone please let me know whether NSI, particularly the Index Linked bond, are available to British ex pats - now living in Spain

Sceptic001

Stew969 wrote: »

Can anyone please let me know whether NSI, particularly the Index Linked bond, are available to British ex pats - now living in Spain

From NS&I website:

Live outside the UK?

Check local regulations before applying. Please also check the tax position where you live (this includes the Channel Islands and Isle of Man). You can only apply by post (see above), because you will need to send us documentary evidence of your identity and address.

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

martyn4764

Fuller info on the website as Sceptic says, but basically they just need certified copies of passport and tax notification (as they can't verify your ID electronically).

Very smooth and quick process, in our experience (from France).

ic451uk

Sadly, no one is eligible for them any longer - NS&I have withdrawn them from sale http://www.nsandi.com/media-centre-nsi-withdraws-savings-certificates-sale

koru

Martin's article currently refers to a Santander index linked bond which pays interest equal to the change in the RPI over 5 1/2 years plus another 5%. Martin says that the interest is all paid at the end of the term of the bond. I assume that this means the interest is all taxable in the year that the bond matures. If so, there is a risk that some people might find themselves in a higher tax bracket for that year and therefore end up paying more tax on this interest than on other products that pay interest annually.

libertysurf

The new ISA season and with worries about inflation through QE is this any good?
http://www.bmsavings.co.uk/savings/index-linked-savings/five-year-inflation-rate-bond-isa-money-supermarket/


BM Savings is offering 5 year inflation rate ISA (issue 3)
You’ll receive a fixed interest rate of 0.50% tax free / AER from the day your deposit is made until the start date of the account which is 16 May 2012. On this day, any interest earned will be transferred either back to the account or to a nominated account
RPI annual inflation rate & interest rate - during the 5 year term, we'll use the March RPI annual inflation rate (published in April) to determine what interest rate you'll receive. You'll receive either the RPI Annual Inflation Rate or a fixed rate of 4.30% tax free/AER, whichever is greater


Any financial people think this is worth it?
BTW, I’m so not impressed with 0.5% interest for a month beforehand. Why so needlessly stingy with money tied up for 5 years?

For a 5 yr term, Halifax will pay 4.5%

kidmugsy

BM Savings 5 year inflation rate ISA or 4.3%

My wife and I are considering it as a home for some ISA transfer money. It would protect the purchasing power of the money if RPI inflation went above 4.3% p.a., and beat inflation if it fell below 4.3%. It's a different gamble from the one (usually) offered by the ns&i ILSC, but with less flexibility. And it keeps your money in an ISA tax-shelter for the next 5 years. (Someday, after all, the law will change and new ISAs may not be permitted.) We're also considering the 3 year version.

libertysurf

The BM 3 year inflation rate ISA - Each year you'll receive either the March RPI annual inflation rate or a fixed rate of 3.70% tax free/AER, whichever is greater.

3.7% is a big drop from Halifax’s 4.25% for 3 years. You are paying 0.55% for the RPI guarantee on the 3 yr one compared to paying 0.2% for it on 5 years.

Looking at the 5 yr ISA: As the first month's interest is 0.5%, the 'averaged' interest in year 1, assuming 4.3% for 11 months, is 3.95%. This means the capital increases less than it might have done and therefore has an effect on the subsequent years' returns. I cannot calculate the true interest rate with cumulative interest.

Undecided at the moment....

Reactor_2

Does anyone know when the NS&I linkers will be out this year? I've seen from looking around, that last year, the first bonds for the financial year were sold in May and just wondering if this was the case this year.