MSE News: NS&I inflation-beating savings: stick or twist?
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Thanks StevieJ.
Interest rates should also rise soon then?
Another consideration though, as discussed above, is that there is no general availability of these certificates right now, so I need to reinvest the whole amount or none of it.
You can cash in part of it?'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 -
No. It's leave all in or take all out.0
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No. It's leave all in or take all out.
Have you confirmed that? If not I think it could be worth giving NS&I a call.
I have checked a recent letter I received and as you say it does not mention the possibility of a partial reinvestment. However, the accompanying leaflet does and the NS&I website doesn't mention this in the list of changes made in September. I suspect that it's just the letter that is misleading.0 -
I totally agree with inflation being a pain and with no index linked nsi's on sale and saving and isa rates falling I'd definitely hang onto them.If the ball had gone in the net it would have been a goal.If my Auntie had been a man she'd have been my Uncle.0
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Gosh alanq I think I'll phone them and check then!0
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Indeed! You beat me to it. I actually phoned them and the guy explained that although I could withdraw, say, the profits, and retain the value of my original investment going forward for 3 years, I would be reinvesting part capital and part interest, so would loose out slightly in terms of overall growth.
I decided to leave mine as it is.0 -
Indeed! You beat me to it. I actually phoned them and the guy explained that although I could withdraw, say, the profits, and retain the value of my original investment going forward for 3 years, I would be reinvesting part capital and part interest, so would loose out slightly in terms of overall growth.
I decided to leave mine as it is.
I am in the same lucky position having gained £2.5k from £15000 invested 3 years ago. It is tempting to take the profit and leave the original £15k but is it true the new offer of inflation+.25 is only available to accounts maturing? If true it seems to make sense to leave it ALL where it is?0 -
I believe so, there are no new issues. Call me a Depressive or a Realist, but all profits should be measured relative to inflation (or your personal inflation). So if you had a bond exceeding inflation by 0.25% that is your true profit, £37.50 on 15k.
It's best to think of NS&I index linked bonds as a safe way of retaining wealth rather than investing. Most high street accounts don't keep up with inflation, effectively losing money and therefore effectively charge you for the privilege of saving with them.
It's probably worth keeping them in my opinion, especially if you are a taxpayer0 -
I've just received notice of maturity for my NS&I Indexed Linked Savings which offers 0.05% + Inflation based upon RPI (tax Free)
Given currently available taxed interest rates, that I'm a Tax payer, and I probably don't need the cash - it seems like its worht leaving in for another 5years.
However, I notice the rules and penalties for early withdrawal have been made more costly.
As for inflation, these are not my only savings - so its a case of hedging my bets !0 -
I think hedging your bets is the best way to think of these certificates.
Especially now that the rates on offer are not as good, penalties are more punitive, and you're talking about 5 year terms.“I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse0
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