Renew my 5yr Index Linked NS&I??

StevieJ

6022tivo wrote: »

Many thanks.
I use my cash isa up every year, and it had to be tax free.
So not a bad deal really.

Just treat it like a one year fix.

Nicholas-bloody-Parsons

Glen_Clark wrote: »

if you have to cash it in early losing 0.25% interest is no big deal is it.
But what about the Index Linking?

To confirm the new NS&I conditions.If you cash it in early

You will now lose:
1. Full 12 months Indexing
2. 90 Days interest.

This applies to the whole investment, even if you cash in just part of your investment.

I am surprised that twerp Lewis has not been jumping up and down and frothing at the mouth over this outrageous change in T&Cs. :mad:

barak

Nicholas-bloody-Parsons wrote: »

To confirm the new NS&I conditions.If you cash it in early
You will now lose:
1. Full 12 months Indexing
2. 90 Days interest.

This applies to the whole investment, even if you cash in just part of your investment.

That's not what my new Terms & Conditions say.

Index-Linking is added each year on the anniversary date of the certificate. Provided you cash in immediately after that anniversary at the start of your investment year, you will only lose 90 days interest on the amount you cash in, which at 0.25% isn't very much!

I am continuing my I/L certificates and - as StevieJ said - treating them as one-year fixes, so have diary notes to review them on anniversary dates.

sabretoothtigger

Can it be cashed out partially. The only other thing is if you know for sure you have a bill to pay, like why not pay off a bit of a mortgage and then negotiate a lower rate, etc

Simple take is, hold on till you have no other savings

agent69

If you are unlikely to need the cash in the near future it has got to be best to roll it over.

I don't think there was an NS & I issue over the last 12 months, so lots of people would jump at the chance to invest with NS & I at the rates you were offered.

Blackdog

It's tax free - yes leave it in under the new terms!

kidmugsy

sabretoothtigger wrote: »

Can it be cashed out partially.

Not efficiently, because a partial withdrawal means that the whole capital amount loses inflation protection for the investment year in question, not just the withdrawal amount. So the logical scheme is that just after an investment year ends weigh up either cashing in entirely OR leaving it all alone for another full year. For some investors that may mean that a good policy is to do a partial cash-in before the new terms apply.

barak

kidmugsy wrote: »

Not efficiently, because a partial withdrawal means that the whole capital amount loses inflation protection for the investment year in question, not just the withdrawal amount. So the logical scheme is that just after an investment year ends weigh up either cashing in entirely OR leaving it all alone for another full year....

That's right and makes it clearer than I did in my previous post that you have to cash in entirely or you will lose a year's index-linking on the remainder.

6022tivo

Fair enough.
I am leaving it in, other things I can fall back on.

Reminds me, my 3 year stepped cash ISA with Northern Rock is due to end...

Will have to transfer this to some nice cash isa bonus that may be around?? Can't find anything yet!

Arthurian

According to the BBC news website, the government is about to change the way RPI is calculated, which will change the goalposts for all inflation-linked savings.

http://www.bbc.co.uk/news/business-20959765