NS&I Inflation-beating Saving: Time to cash

adindas

Dear All

I believe some of you opened Inflation-beating Saving from NS&I in May last year. My saving will reach 1st anniversary on 25 May 2012. I want to cash it as I will need it. I understand I cash it on May 26 I will get RPI + something about below 0.5%. I do not remember the exact figure but I remember that 0.5% is the average. I want to ask knowledgeable people to avoid making mistake that might cost me in term of penalty and reduced interest rate.

1. What do I need to do to cash it, just call them and then send the certificate or anything else? Is there any online form to fill in?

2. I understand that if I cash it on 26 May 2012 I will get RPI + something about below 0.5%, is my understanding correct???

3. I want to put all of this money in one go to top up my Monmouthshire BS Flexible saver which is currently paying (2%+2%bonus). The bonus condition is no more than four withdrawals to the anniversary date which is on my case in mid January 2013. The reason why I want to withdraw from NS&I and then transfer it to Monmouthshire BS saver, because I need instant access without losing the interest. When I immediately need the money I will just leave £1 balance on that saving until it reaches its anniversary to gain (2%+2%bonus) and then close it thereafter. I am aware of loosing tax privilege of I switch it to Monmouthshire BS Flexible saver. But considering that I need instant access, and high probably I will need the money in a few months, I think this is a better alternative. Do you see anything that I have missed here to optimise my interest rate?


Thank You very much for your time.

isofa

Everything you need is here: http://www.nsandi.com/savings-index-linked-savings-certificates?tabid=c

Sceptic001

You can download a withdrawal form from the NS&I website. If you want to cash in on an anniversary date you can specify this on the form.

When you say you need instant access, do you realise that you can encash index-linked certificates at any time after the first anniversary and get full index-linking plus the (small) bonus? NS&I ask for eight working days, so not exactly "instant", but not far off.