NS&I 5 year index linked saving certs 2011 issue - half way point!

Fella

veryintrigued wrote: »

It wont be the first time it is - I think there have been two occurrences on this thread (without looking back)

It reinforces Pollys judgement on them.

Is that the concensus then, that the calculator is incorrect this month? Mine seem to have fallen in value quite a lot which hasn't happened before (although they have fallen slightly before).

cheers
Fella

Fella

I spoke to someone & they didn't know anything about any fault with this months calculator.

veryintrigued

Fella wrote: »

I spoke to someone & they didn't know anything about any fault with this months calculator.

Similar response received.


They believe the calculator was accurate.


Another update to it on Tuesday after the latest inflation figures are released.

zerog

I was a bit late to these only putting in 15K exactly 4 years ago, which makes my effective rate only 2.5% APR, if the calculator is correct

If I am predicting that the RPI number for April 2016 will be higher than May and June 2016, when would be the best time to cash these out? As I recall the additional interest will be added monthly after the first year, so if RPI falls by a certain amount from April to June 2016, I will get more by cashing out in May rather than waiting until August? But does this also depends on the exact day RPI figures will be released?

polymaff

zerog wrote: »

I was a bit late to these only putting in 15K exactly 4 years ago, which makes my effective rate only 2.5% APR, if the calculator is correct

If I am predicting that the RPI number for April 2016 will be higher than May and June 2016, when would be the best time to cash these out? As I recall the additional interest will be added monthly after the first year, so if RPI falls by a certain amount from April to June 2016, I will get more by cashing out in May rather than waiting until August? But does this also depends on the exact day RPI figures will be released?

First year apart, you'll get the best yield on pre-penalty issues such as Issue 48 by exitting at the maximum RPI in the certificate's final year. Your supposed prediction doesn't seem likely to me. On what is it based?

The RPI figure used doesn't depend upon the date it was declared, but on the month it reports.

I reckon that if these are Issue 48 the APR over the first four August-August years was 2.84%. As for a full-term APR, I would expect it to be somewhat less.

masonic

zerog wrote: »

If I am predicting that the RPI number for April 2016 will be higher than May and June 2016, when would be the best time to cash these out? As I recall the additional interest will be added monthly after the first year, so if RPI falls by a certain amount from April to June 2016, I will get more by cashing out in May rather than waiting until August? But does this also depends on the exact day RPI figures will be released?

Well the July figure has been the same or lower than the May figure in 6 out of the last 10 years, whereas the May figure has been higher than the April figure 9 times in the last 10 years, so what you are suggesting could make sense but perhaps for the May figure rather than April. If you want to cash in early, then it would make most sense to wait for the May figure to publish (in June) and cash out after serving the rest of that account month so that you obtain index linking and interest up to the point you cash out.

GreenBitterfly

I've got £1000 in certificates but am wondering about cashing them in, and combining them with other long term savings I have.

masonic

GreenBitterfly wrote: »

I've got £1000 in certificates but am wondering about cashing them in, and combining them with other long term savings I have.

Whether that is worth doing will depend on the exact certificates you have, what rate (after tax) you are getting on the savings you are intending to combine them with, and whether or not you value having a product that will protect you from high inflation in the future.

veryintrigued

Calculator has been updated


(Mine is) up to its highest value which is 13.32% increase from the value and invested and .63% up from last month.

Gaaraz

Invested £15k back in July 2011, the return isn't great, but I'm thinking of keeping these anyway since they're tax free and track inflation. As far as I know I can easily renew them with the same terms (inflation plus 0.5%) when they do expire? Thank you