Ns&i isa

oliviarosejackson

Hi,

we are looking at starting some savings in 2012 and we are unsure of the best route to go down. We have been speaking to OH's dad and he was telling us how good he finds NS&I. They have their direct ISA that may suit us.

I was wondering if anyone had any views on this ISA, whether it would be a good move and when would be a good time to open an ISA?

Thanks in advance.

System

oliviarosejackson wrote: »

Hi,

we are looking at starting some savings in 2012 and we are unsure of the best route to go down. We have been speaking to OH's dad and he was telling us how good he finds NS&I. They have their direct ISA that may suit us.

I was wondering if anyone had any views on this ISA, whether it would be a good move and when would be a good time to open an ISA?

Thanks in advance.

The NS&I Direct ISA does not allow any Transfers-In from other providers.

The Interest rate is not the best headline rate (but it is reasonable at 2.5% variable)

Otherwise, it is no better and no worse than most other e-ISA type accounts available from many other providers.

The best time to open an ISA is : A.S.A.P. - since you only start earning tax free interest once it is funded.

bobthedambuilder

I am guessing that your OH's dad recommendation may be referring to the N.S.& I. Index Linked Certificates, which (when they're available) pay a tax-free interest of inflation (RPI - currently around 5% p.a. ) plus a small additional percentage. This beats most if not all ISA's available on the market. There are conditions to receiving this interest.

Unfortunately the latest issue of this bond is now fully subscribed, so you'll have to wait until the next issue is announced. I think you can leave your contact details at the NS&I website to receive notification as soon as the next ones go on sale. For the last issue, each individual could purchase up to £15,000 worth.

Maybe you should start saving now into an instant access ISA (you should be able to find one to give you about 3% p.a. interest), and use this money to buy the next issue of NS&I certificates when they're eventually available.