NS&I index linked certs

castle96

for each 12 mth period, is the interest added for that period, 'banked', ie added and cannot go down for the next years/mths., ie if inflation were to go down after the first year, would the return be calculated for the entire period at withdrawal? If inflation was lower, then the return would be less.

wriggly

Yes, one of the benefits of NS&I certs over many of the bank inflation-linked bonds is that each 12 month anniversary, you get the increase in RPI and that is locked in. Your certificate can never pay you less, even if RPI goes negative.

Many of the banks' inflation-linked bonds give you the RPI change over the whole term, which may not protect you as much, especially if we have inflation followed by deflation during the term of the bond.

kar999

So according to their calculator, for those that filled your boots this time last year.....

Current value of your certificate £15,741.00

This calculator was updated with the latest Retail Prices Index (RPI) figure, announced 17 April 2012

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

Edit: In simple interest terms that's 4.94% tax free which is damn good for 12 months but somewhat less than the headline rate of 5.8% misleadingly highlighted by much of the press at the launch when RPI was 5.3%

Quietmanc

And if you'd invested the full amount in March 2010- current value is £16896-00.

kar999

I missed out of that years issue pithering about deciding!

Shame there wont be an issue this year.

bigfreddiel

my 5 yr certs have just made about £4k each-locked in and rolling for another 5yrs

fj

castle96

kar999
you say £15741 if you invested about this time last year.

When I put in £15k 23/5/11, I get £15573

why the difference

(thanks for replies)

lisyloo

There are two types of certificates (3 year and 5 year??)
Perhaps that might explain the difference.

castle96

mine (ie what I put into calculator), are 5 yr
If I put in 3 yr, then £15588.

Presumably, as it is not yet 23/5/2012, this could be the reason ?? Assume 999, have alread run a full year??

castle96

http://www.nsandi.com/files/asset/pdf/illustrative_example.pdf

ah....

oneilly

With inflation dropping below ISA rates is it time to sell up?