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

google5442

masonic wrote: »

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.

I was reading through this thread and I have the same question.

The date of my certificate is 17 August 2011.

If I want to cash out after index-linking of the May 2016 RPI has been added, which date should I write on the form?

The May RPI figure will be published on 14 June, but since it wouldn't be a full "account month", what happens if I ask to cash out on 15 June - do I only get the April figure or is the April to May RPI increase "pro-rated" for the few missing days?

Also just out of interest, the June RPI figure will be published on 19 July, so if I ask to cash out on 17 July, what index-linking would I receive for the month from 17 June to 17 July, since the June figure isn't known?

englisho

Just received my letter yesterday.. Maturity date 9th June .. Estimated Value £17,124.55

Wife also invested full amount a week after me so no letter as yet.

Was intending to cash it in but with no mortgage or use for it I'm just going to let it roll over for another 5 years. What's to lose ?

typistretired

As my savings were mostly in fixed or notice accounts at the time I was only able to buy a £3000 maturing 13th May 2016 and £8000 maturing 26th May 2016 before they withdrew the certificate from sale. My maturity letter for the £3000 is £3438.32 and for the £8000 is £9207.32 any of the clever mathematicians able work out the annual interest rate that works out at.

polymaff

typistretired wrote: »

As my savings were mostly in fixed or notice accounts at the time I was only able to buy a £3000 maturing 13th May 2016 and £8000 maturing 26th May 2016 before they withdrew the certificate from sale. My maturity letter for the £3000 is £3438.32 and for the £8000 is £9207.32 any of the clever mathematicians able work out the annual interest rate that works out at.

You'll find the answer to the AER way back in post#290 to this thread. By the way, that £3438.32 is not the redemption value for a £3k cert, I believe. You will find that it redeems at £3452.75 give or take a few pennies.

Oh, and if you can't wait to scan back to the mid-April posts, the AER was 2.851%

lisyloo

englisho wrote: »

Just received my letter yesterday.. Maturity date 9th June .. Estimated Value £17,124.55

Wife also invested full amount a week after me so no letter as yet.

Was intending to cash it in but with no mortgage or use for it I'm just going to let it roll over for another 5 years. What's top lose ?

To answer your question - Better returns (not with zero risk though).

jsinc

typistretired wrote: »

As my savings were mostly in fixed or notice accounts at the time I was only able to buy a £3000 maturing 13th May 2016 and £8000 maturing 26th May 2016 before they withdrew the certificate from sale. My maturity letter for the £3000 is £3438.32 and for the £8000 is £9207.32 any of the clever mathematicians able work out the annual interest rate that works out at.

(1+ (Final amount - Start amount)/Start amount)^(1/years invested)-1

e.g. = (1+(9207-8000)/8000)^(1/5)-1

[Deleted User]

jsinc wrote: »

Will reinvest for 5 years. Tax free, RPI currently 1.56% and rising, lowest annualised RPI has been 0.7% (when CPI was negative), alternative saving rates not much better and falling, 90 day cashing in penalty rate of annual 0.01%.
.

I was glad to see your answer, it was helpful to me, thank you. I have 2 x 5 year certs maturing on 10th june, widowed now so inherited one. I am going to roll them both over, tax free and safe so nothing to lose. I have another two bonds (saga) maturing in august, so will have a cash lump sum then too

typistretired

jsinc wrote: »

(1+ (Final amount - Start amount)/Start amount)^(1/years invested)-1

e.g. = (1+(9207-8000)/8000)^(1/5)-1

Thank you for your reply but I wouldn't know what to do with that formula once I had entered into the spreadsheet! All I use is the autosum for adding up columns!

typistretired

My son has just helped me and it comes out at 2.85%. I used the £3000 and £3452.75 quoted by polymaf

polymaff

typistretired wrote: »

My son has just helped me and it comes out at 2.85%.

As if I'd publish duff info

BTW, was I right that that £3,438.32 was an NS&I estimated value?