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Savings Certificates
Eck
Posts: 97 Forumite
Would index linked savings certificates be a good choice to put approx £15k into?, are they tax free?
I was speaking to someone at NS&I about savings and they recommended index linked savings certs' as a good way to go, anyone out there able to comment on this please.
Many thanks
Eck.
I was speaking to someone at NS&I about savings and they recommended index linked savings certs' as a good way to go, anyone out there able to comment on this please.
Many thanks
Eck.
0
Comments
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I wouldn't be inclined to put that much in Savings Certs but they did say on Working Lunch (BBC2) today when comparing cash ISAs that NS is a good one because it offers instant access and you can remove your money without notice or penalty if you should ever need to. If you are a tax payer ISAs are the only tax free way to save either cash (max £3000) and equities(£4000), i.e. £7000 each year in total. If you are only interested in cash savings do a mini ISA and put the rest in one of the high interest paying accounts being offered at the moment. There should be a list of the best ones on this site or have a look at Moneysupermarket or Moneyfacts.0
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Eck wrote:Would index linked savings certificates be a good choice to put approx £15k into?, are they tax free?
I was speaking to someone at NS&I about savings and they recommended index linked savings certs' as a good way to go, anyone out there able to comment on this please.
Many thanks
Eck.
Yes they are tax-free.
At the moment they are paying 1.15% more than inflation which is at 4.4% giving 5.5%. This is the equivalent of 7.05% for basic rate taxpayers and 9.16% for higher rate taxpayers so yes it does seem a good way to go if you have already used your ISA allowances.0 -
Bear in mind that while the interest part is fixed, the inflation-linked part isn't.0
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Also bear in mind that you are not required to hold these until full term, providing you hold for one year you will receive inflation + 0.9 on the three year issue, if you cash in within first year you receive only your money back.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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Thanks to you all.......0
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Having used mini ISA and wanting to avoid stocks which certificate would you recommend for higher rate tax payer - 3 year pays 1.15 and 5 year pays 1.10. Logic says 3 year is better rate however I may be missing something?0
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The three year is the newer of the two and hence the better deal, we may be due a new five year issue soon.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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