MSE News: NS&I inflation-beating savings: stick or twist?

kar999

Yep... Having shoveled my full ISA allowances into stocks and shares ISA's for the last two years (mainly in income funds yielding c.5%) I'm grateful for another £15k of tax free savings.

10_66

This may sound like a daft question, but here it is anyway. If I want to find out what my ns&i IL saving certificate is worth, using their interest calculator, it was taken out as a 5 year certificate (I'm aware of the terms around early withdrawal), if I enter 5 years for the term, is that going to give me the rough estimate of what it's worth if it were to be cashed in now (not that I'm thinking of doing so, just interested).

MarkFromCornwall

It's not a daft question. The answer is yes, it gives a good estimate of the value if cashed in now.

10_66

MarkFromMullion wrote: »

It's not a daft question. The answer is yes, it gives a good estimate of the value if cashed in now.

Thanks for the reassurance of the validity of my question .

oneilly

With inflation dropping is it now time to cash in and dump as much as you can in ISA's

Blackdog

oneilly wrote: »

With inflation dropping is it now time to cash in and dump as much as you can in ISA's

I certainly would be making sure that you fill up your ISA's first. If you have reached your annual ISA limit (and you are a tax payer) then it may be worth holding on to the remaining index linked bonds as at least the return is tax free.

sabretoothtigger

manathome said it. You have to measure the scarcity of this resource before cashing out.

Inflation can drop monthly quite easily, its the yearly averages that probably show a better picture of general direction. Is there a new graph

cepheus

Looks like it was the right decision to hold them considering the latest inflation figures. Do you think the BOE are rather optimistic on inflation prospects?

The Retail Prices Index measure of the rise in the cost of living rose to 3.2% in October from 2.6% in September, according to the Office for National Statistics (ONS).
http://www.moneysavingexpert.com/news/banking/2012/11/inflation-up-by-largest-figure-in-two-and-a-half-years

Blackdog

There are so many impacts on inflation that BOE have no influence on so they have a real tough time predicting where it is going. Oil and gas prices are just one thing that can have a major impact on inflation. I have always said it is worth hanging on to these certificates if you have them especially as they are tax free. Inflation will go up and down but the tax situation is static.

redmalc

Hi I have earnt £915 interest since May 2011 on 15K,better than the best accounts on offer at the moment