Index Linked Certificates NS&I terms

maximise

Quick question, would be useful to know...

is it possible to invest say £2000 in these certificates now... and say another £3000 a few months down the line? As long as the total holding does not exceed £15000 per person.

Also if say two years down the line I needed to cash in the investment, would I still receive the first two anniversary index linked interest amounts?
2011-2012's RPI change
&
2012's to 2013's RPI change

Thanks

maximise

I've just read this and it has answered my second query! Thanks MSE!

maximise

Purchase and holding limits
39. The minimum for each purchase is £100, except for Reinvestment Certificates where there is no minimum.
40. An applicant may apply to purchase any amount subject to the maximum holding limit in paragraph 41.
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. This does not apply to Reinvestment Certificates, where there is no maximum, nor do Reinvestment Certificates count in applying the limit to other holdings of the same Issue.




Think I've got the answers I need... unless you think otherwise!

FinancialindependentIN6

Where is the best place to but cash after you have maxed out on this? I have a fixed mortgage at 3.75% for 4.6 years and am a 40% tax rate payer so I work out I need a pre tax 5.25% to break even.

alanq

maximise wrote: »

is it possible to invest say £2000 in these certificates now... and say another £3000 a few months down the line? As long as the total holding does not exceed £15000 per person.

Yes....provided they are not withdrawn from sale. Once NS&I has raised its target amount of cash for the year they will be withdrawn from sale. Last year they were withdrawn in July. This year the target is higher and only £15,000 per person is on offer. (Last year £15,000 in each of 3-year & 5-year certificates)

dtsazza

FinancialindependentIN6 wrote: »

Where is the best place to but cash after you have maxed out on this? I have a fixed mortgage at 3.75% for 4.6 years and am a 40% tax rate payer so I work out I need a pre tax 5.25% to break even.

I don't think there is any such place to hold cash. Even five-year fixes don't reach the 5.25% target.

If you have any ISA allowance left, you can get 4% on three-year fixes, better than the rate on your mortgage. But to put that into perspective, even sticking the entire annual allowance in would only make you £13.35 a year better off. Chances are that's not worth the hassle of the less of instant access (depending on what your alternatives are).

FinancialindependentIN6

dtsazza wrote: »

I don't think there is any such place to hold cash. Even five-year fixes don't reach the 5.25% target.

If you have any ISA allowance left, you can get 4% on three-year fixes, better than the rate on your mortgage. But to put that into perspective, even sticking the entire annual allowance in would only make you £13.35 a year better off. Chances are that's not worth the hassle of the less of instant access (depending on what your alternatives are).

Thanks, When I took the extra fixed out I new I can offset the interest against the retun I get on an investment property and was beting that BOE rates would go up. Time will tell if I was correct. Thanks for the hint re ISA allowance.

alanq

alanq wrote: »

Yes....provided they are not withdrawn from sale. Once NS&I has raised its target amount of cash for the year they will be withdrawn from sale. Last year they were withdrawn in July. This year the target is higher and only £15,000 per person is on offer. (Last year £15,000 in each of 3-year & 5-year certificates)

Now withdrawn.