NS&I: Index-linked Savings Certificates, 6.15% tax free

kempstar

Hello

I would like to sign up for one of these, but only want to commit for 1 year. Can you cash out after 1 year? If so, what rate of interest would you get? I am a higher rate taxpayer.

Thanks
Christian

baldbloke_2

kempstar wrote: »

Hello

I would like to sign up for one of these, but only want to commit for 1 year. Can you cash out after 1 year? If so, what rate of interest would you get? I am a higher rate taxpayer.

Thanks
Christian

I think the official NS&I ts&cs would be a better read for you but here goes anyway ... yes you can cash in either the 3yr or 5yr cert at any time and after one year (but not before) you will receive index-linking for one year plus the net interest for the FIRST YEAR. I put it like that because the stated rate of interest is an average over the period of the cert and starts lower and increases over the period to average the quoted rate. That is important to note - it acts as an incentive to hold on to the cert for the full term and is quite sensible really. The year by year 'returns' are quite clearly stated on the NS&I site and I strongly recommend you refer to them.

As a part of an ordinary savings portfolio they are excellent but will not suit everyone I'm sure. For a higher-rate taxpayer I think they are recognised as being very good value.

As a low-wage earner I salute you ...