NS&I index linked savings certificates

kidmugsy

musehead wrote: »

I've recently renewed two of my old 3-year terms for a further 5 years.

How recently? My request was nixed in mid-December.

kidmugsy

Sorry everyone, my memory let me down. What was refused was the possibility of splitting a reinvestment between a 3 year certificate and a 5 year certificate.

Newbie2saving

My certificate matures next month. I have read this thread and I am asking the question again as I felt it got a mixed response (ie, more likely that it is getting late and my brain is shutting off!).

Does the certificate maturity price pay to 2013 (RPI+1%) and then the next period pays RPI+0.25% on the initial investment plus interest, ie compounding the interest over the next 3yrs or is it that the certificate goes from 3yrs effectively to a 6year certificate, only paying interest at the end, hence my base price remains the same and no compounding?

Does that make sense? Thanks in advance...

Trix21_2

your certificate compounds the interest and index linking for the first 3 year term then your next 3 year term is interest and index linking on top of your maturity value(from your first 3 years). You can cash part in on maturity if you want to take out your first 3 years of index linking and interest, then only reinvesting the capital.

Newbie2saving wrote: »

My certificate matures next month. I have read this thread and I am asking the question again as I felt it got a mixed response (ie, more likely that it is getting late and my brain is shutting off!).

Does the certificate maturity price pay to 2013 (RPI+1%) and then the next period pays RPI+0.25% on the initial investment plus interest, ie compounding the interest over the next 3yrs or is it that the certificate goes from 3yrs effectively to a 6year certificate, only paying interest at the end, hence my base price remains the same and no compounding?

Does that make sense? Thanks in advance...

lisyloo

Just got my docs and they say 0.15%.
Somone else says the same on another thread.

Newbie2saving

lisyloo wrote: »

Just got my docs and they say 0.15%.
Somone else says the same on another thread.

Just checked all my literature and it states RPI+0.25% as a reinvestment for 3years to 12th March 2016. So looks like the rate has dropped again. I did reinvest at the time, I won't need to touch this cash so will probably keep rolling it over (obviously depends on what the terms are in 2016 and interest rates elsewhere).

Thanks for the replies....

balf

Newbie2saving wrote: »

Just checked all my literature and it states RPI+0.25% as a reinvestment for 3years to 12th March 2016. So looks like the rate has dropped again. I did reinvest at the time, I won't need to touch this cash so will probably keep rolling it over (obviously depends on what the terms are in 2016 and interest rates elsewhere).

Thanks for the replies....

Not sure when you reinvested but I rolled over a previous certificate on 20 May last year, 3 year term. RPI +0.15%.

I take the view that this is still better for me as a basic rate tax payer than I can get elsewhere, given that my isa is maxed out.

And inflation can go up and down so who knows. The BOE won't want inflation to drop much more, so it is quite possible that as the economy improves it could move up again.

And once you sell them you are not likely to get them back any time soon.

David.