NS&I Certificate maturing - advice, please.

Guys_Dad

My 3-year NS&I investment comes to an end on September 18th. My £15,000 is now worth £16981.

My gut feel is to leave the money in as they will be inflation-proofed with 0.35%, 0.45% and 0.71% on top over the next 3 years.

I already have £15k in the current offering - well, strictly speaking the ones that were withdrawn yesterday! .

Anyone got any better ideas for the matured investment or should I stick with my gut feeling and leave them invested?

Ark_Welder

Unless you feel that the rate of inflation will fall so that the returns available will be lower that you can get on other accounts then leave them investend until your gut feeling changes. You will not be able to invest new cash in ILSCs for a while, but you can take cash out of the matured certificates at short notice.

atush

I'd might be inclined to leave it in as they have just withdrawn the current offer. And the rest of our advice would be based ont hings we don't know- do you have other savings? Pensions? Equities? Cash? Property? Debt?

Guys_Dad

atush wrote: »

I'd might be inclined to leave it in as they have just withdrawn the current offer. And the rest of our advice would be based ont hings we don't know- do you have other savings? Pensions? Equities? Cash? Property? Debt?

Yes, thanks, I have other savings, mostly liquid. And, fortunately, debt free.

I thought I'd be best to leave them in as I can't see anything better at present. To make nearly £2k on a £15k investment over 3 years isn't bad in this day and age - tax free as well.

But it's great to have others agreeing as well.

Thanks.

atush

Do you have any equity exposure? Or are you retired and want zero risk?

Nicholas-bloody-Parsons

No brainer..... Roll it over.

For re-investments, the interest is (normally) added monthly. So you can take your money out anytime, without losing any interest.

but you should read the small print, incase this has changed.

oldvicar

Like everyone else says, if they were mine I would keep them / let them roll-over.

One option you may have is to change them from a 3-year to a 5-year term if that's what you would prefer. But given that you have just had a full investment in the latest 5-year term, I'd be inclined to leave them as they are to (hopefully) roll-over again in another 3 years and keep maturity/re-investment dates staggered. What we don't know is what (if anything) will be offered to those with maturing certificates in 3 and 5 years time.

Meeper

The proper response will depend entirely on your attitude to risk and the outcome you are looking for. If you want that money to be worth a certain amount in 5-10 years time, then it may not be appropriate. If you require security and no risk, then it likely a good thing.

It's frustrating to see how many people on these boards give "advice" and directions on how to proceed with only a fraction of the information required having been presented. No wonder the country is in a financial mess. Why don't you consult an adviser instead of people on forums?

oldvicar

Meeper wrote: »

The proper response will depend entirely on your attitude to risk and the outcome you are looking for. If you want that money to be worth a certain amount in 5-10 years time, then it may not be appropriate. If you require security and no risk, then it likely a good thing.

It's frustrating to see how many people on these boards give "advice" and directions on how to proceed with only a fraction of the information required having been presented. No wonder the country is in a financial mess. Why don't you consult an adviser instead of people on forums?

@ Meeper. I welcome peoples comment on forums such as these, and also recognise how wrong some of them can be. But whether they come from people who are regulated financial advisors or not, the circumstances dictate that they never constitute 'advice'. I think most people know that comments on forums such as these are not 'advice' following a full fact-find of their circumstances and requirements.

An 'adviser' I came across recently didn't even know about these products the day after they were re-launched in May !!

To specifically answer the question you posed, one very good reason NOT to consult an adviser is that their fees may not be worth the advice given. This is especially likely to be the case where sums are small.

Sceptic001

oldvicar wrote: »

To specifically answer the question you posed, one very good reason NOT to consult an adviser is that their fees may not be worth the advice given. This is especially likely to be the case where sums are small.

Just for interest, Meeper, as an IFA, how much would you charge a new client to advise what to do with, say £17k in a maturing ILSC?

Meeper

If the client wanted to only look at that element without fitting it into a full financial review and plan, I would probably charge something in the region of £300 for the individual element research and implementation.