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

polymaff

bertsilver wrote: »

Is there any cash ISA's that have a better return?

Difficult to make fair comparison as the bank accounts are all instant access and the overwhelming majority of cash ISAs aren't. The best of the instant access cash ISAs offer about 1% tax-free. 5% AER from TSB Classic Plus and Nationwide FlexDirect bank accounts yield 4% to a basic rate taxpayer, 3% to a higher rate taxpayer. At the moment, Punjab offers 2.5% on a cash ISA - but that is for a five year yerm.

guitarman001

OK guys. I put £11k in NS&I index-linked and it's due to mature now.
Total £13,342 which is just under 2% a year.

I have the option to renew for 3 or 5 years at index linking + 0.01% but I'm guessing it wont be worth it.....


In other news I've filled up Santander 123, 2x Lloyds accounts, 3x Halifax, have £20k+ in shares - anyway, I'm basically going to have £13k I don't know where to put (and in fact I have another £6k right now and adding every month) - what on earth do I do with this cash??

bertsilver

polymaff wrote: »

Difficult to make fair comparison as the bank accounts are all instant access and the overwhelming majority of cash ISAs aren't. The best of the instant access cash ISAs offer about 1% tax-free. 5% AER from TSB Classic Plus and Nationwide FlexDirect bank accounts yield 4% to a basic rate taxpayer, 3% to a higher rate taxpayer. At the moment, Punjab offers 2.5% on a cash ISA - but that is for a five year yerm.

So if I roll over I get 0.01%, what would an ISA rate be for the same return?

polymaff

bertsilver wrote: »

So if I roll over I get 0.01%, what would an ISA rate be for the same return?

You get "RPI" plus 0.01%. So, currently 1.33%

Rollinghome

polymaff wrote: »

You get "RPI" plus 0.01%. So, currently 1.33%

Obviously always bearing in mind that is looking backwards and you won't necessarily get a return of 1.3% pa plus the coupon at the end of a year or at the end of five years - any more than the final return was to match the 5.20% RPI figure that was published in May 2011 (despite the implied suggestion that it would in the MSE newsletter at the time).

In some ways though the return on the certs is more predictable than variable or fixed ISA rates. *If* RPI can taken as a true measure of inflation then the real return on the certificates will be 0.01%. If CPI is a more accurate measure then the real return is likely to be a bit more. As for the real return on ISA rates over the next 5 years, who knows.

In the end, whether someone should hold or fold depends on what they want to achieve and how IL certs fit in with their other savings and investments.

badger09

guitarman001 wrote: »

OK guys. I put £11k in NS&I index-linked and it's due to mature now.
Total £13,342 which is just under 2% a year.

I have the option to renew for 3 or 5 years at index linking + 0.01% but I'm guessing it wont be worth it.....


In other news I've filled up Santander 123, 2x Lloyds accounts, 3x Halifax, have £20k+ in shares - anyway, I'm basically going to have £13k I don't know where to put (and in fact I have another £6k right now and adding every month) - what on earth do I do with this cash??

Nationwide
TSB
BoS
Tesco
Various regular savers
Pension
S&S ISA

guitarman001

Used to have Nationwide, guess I could open another one. That deals with only £2.5k.

TSB & Halifax I've loaded up on.

Tesco - will look into it.
Lloyds - need to have 2 direct debits and I have no more

Already contribute 10% into company pension - wanted rest for house savings (so no risky shares).

Regular savers - any decent ones? Not worth it for higher rate payers?

When you start going over £60k or so there's nowhere to put the money

badger09

guitarman001 wrote: »

Used to have Nationwide, guess I could open another one. That deals with only £2.5k.

TSB & Halifax I've loaded up on.

Tesco - will look into it.
Lloyds - need to have 2 direct debits and I have no more

Already contribute 10% into company pension - wanted rest for house savings (so no risky shares).

Regular savers - any decent ones? Not worth it for higher rate payers?

When you start going over £60k or so there's nowhere to put the money

Halifax? Do you mean BoS Vantage x 3?

DDs - easy to solve loads of information on this & Budgeting & Bank A/cs boards

Regular savers - several @ 6%, 5% etc (post 5)

http://forums.moneysavingexpert.com/showthread.php?t=608697

guitarman001

Sorry yes, I meant BoS x3

5/6% regular savers? I'll check the link later on -thank you!

guitarman001

Checked some of those out.
Still only £200-500 a month and you have to fully switch account so can't have them all. Definitely sucks to be holding cash right now.