NS&I saver question

Reaper

It seems even some NS&I staff don't understand how Index Linking works and also think it functions the way Financial Advisor describes. See:
http://www.thisismoney.co.uk/savings-and-banking/article.html?in_article_id=534155&in_page_id=7

le_loup

Financial_Adviser wrote: »

I'm a financial adviser

Remind me not to use you!

SCARFACEK

For anyone's who's applied the old fashioned way by post and sending a cheque, just wondering if you could post if or when you see any movement in either receiving a confirmation in writing or see your cheque cashed. I posted all mine off on Sunday evening so just waiting at mo

alanq

The website gave one address:
"Index-linked Savings Certificates
National Savings and Investments
Glasgow
G58 1SB"
http://www.nsandi.com/savings-index-linked-savings-certificates-other-ways-apply

The application form gave another
"Savings Certificates,
National Savings and Investments,
FREEPOST GW3276,
Glasgow,
G58 1BR."
http://www.nsandi.com/savings-index-linked-savings-certificates-other-ways-apply

I sent off an application on Tuesday with the first address and a 1st class stamp. I assume that using the FREEPOST address will result in the application going by 2nd class.

Which did you use?

JoeCrystal

The first one with first class stamp of course!

SCARFACEK

alanq wrote: »

The website gave one address:
"Index-linked Savings Certificates
National Savings and Investments
Glasgow
G58 1SB"


The application form gave another
"Savings Certificates,
National Savings and Investments,
FREEPOST GW3276,
Glasgow,
G58 1BR."


I sent off an application on Tuesday with the first address and a 1st class stamp. I assume that using the FREEPOST address will result in the application going by 2nd class.

Which did you use?

Yeah I used the 2nd freepost one. Still assuming no one's heard anything which ever address they used?

Financial_Adviser

It seems some here really are missing the point (noh included). The index, if you look at it on a month by month basis, has actually decreased on many occasions since it started (This is Money - is it Jan 1987 or 1988??!). There is a very real chance that year one of your investment could provide a negative return i.e March 2008 the index was 212.1 and March 2009 it was 211.3, therefore if this happens again the first year could bring a return of 0.25%. A gamble it is - the gamble then is if this happens is do you hang out for the end of year 2 to try and make up the loss in the growth that was expected? 5.2% should not be banded around and is mis-leading. Cash ISA investments should remain where they are!

catfish50

Financial_Adviser wrote: »

It seems some here really are missing the point (noh included). The index, if you look at it on a month by month basis, has actually decreased on many occasions since it started (This is Money - is it Jan 1987 or 1988??!). There is a very real chance that year one of your investment could provide a negative return i.e March 2008 the index was 212.1 and March 2009 it was 211.3, therefore if this happens again the first year could bring a return of 0.25%. A gamble it is - the gamble then is if this happens is do you hang out for the end of year 2 to try and make up the loss in the growth that was expected? 5.2% should not be banded around and is mis-leading. Cash ISA investments should remain where they are!

F.A. -- I'm sorry but you are the one who is confused.

Rollinghome

Financial_Adviser wrote: »

I'm a financial adviser and it took me a while to understand this after reading and re-reading the documentation.

As has been pointed out already, you've completely misunderstood how Index Linked Certs work and in case you mislead others it would be helpful if you deleted your post.

It's scary to think that there are people out there like you giving "financial advice".

TheMatrix_2

I don't know what to make of these certificates now. If inflation stays at 5.2% in 12 months time, does this then mean all I get is 0.25% as it has not gone up, or does it mean I get 5.45% after 12 months