NS&I index linked saving certificates.

whattochoose

I invested £15000 in May 2011, for a 5 year term.
I did an estimate on the NS&I website which gives me an estimated figure of £16554 at the present time.
I will be leaving the money in for the full 5 year term. I know it's impossible to fully know what the yield will be after 5 years because of the uncertainties of the RPI rate.
However, I was wondering what members would be hoping to come out with on maturity if they've invested a similar amount.
Thank you.

le_loup

It doesn't matter. It will have a buying power greater than when you opened it.
If you are hoping for, say a 53% increase, that only means that inflation will have been about 52% and you will be no better or no worse off than if you were expecting an increase of, say, 10%

whattochoose

Yes, I can certainly recognise a lot of sense in what you're saying and thank you.
However, I do think people have their own lifestyles which means their individual cost of living expenses may well be less, or more, than the official figures given when inflation details are published each month.
To be honest, I'm a bit of a duffer with stuff like this, so would still be grateful if someone could suggest an amount they think I might come out with once my £15000 index linked certificates mature after five years.

Glen_Clark

le_loup wrote: »

It will have a buying power greater than when you opened it.

....... if you trust the sort of inflation figures that include Blu Ray Disc players and ignore housing costs ....

le_loup

whattochoose wrote: »

To be honest, I'm a bit of a duffer with stuff like this, so would still be grateful if someone could suggest an amount they think I might come out with once my £15000 index linked certificates mature after five years.

How long is a piece of string?
We live in an unpredictable world, that is why you put your money into the closest thing to a near cert as possible.
Sorry, can't help further as my guess will be as good or bad as yours.

lisyloo

Not sure why you are asking for guesses - we can only guess.
If you really need to know a range then the best thing to do would be to use an excel spreadsheet and input various RPI figures.
That would at least give you a ball park for the range.
Not sure how anyone else can help you with this.

I just had a one year statement for 3rd April and the RPI figure was 2.67%.

rexel

is it time to sell these certificates with inflation still going to fall

eskbanker

rexel wrote: »

is it time to sell these certificates with inflation still going to fall

Depends if you think you can find a better home for the money! RPI itself has only dropped slightly to 2.5%, so, bearing in mind that the NS&I interest includes a bit more and is paid gross, it's still quite hard to find better rates apart from the few current accounts paying 4-5% on smallish balances.

lisyloo

is it time to sell these certificates with inflation still going to fall

Depends where else you can put the money.

If you pay lower rate tax you might want to look at the current accounts, but there are limits and hoops to jump through.
If you pay higher rate tax then not worth it unless you are prepared to invest.

I'm keeping mine in, but I pay 40% tax, don't want to invest the money (it's to pay my mortgage off in 4.5 years) and don't have anywhere better to put it.

Also as above RPI isn't falling like CPI
http://www.bbc.co.uk/news/10612209

Worth keeping an eye on though.
I would have thought it would level off rather than the alternatives.

whattochoose

Thank you all.

kar999

I'll be keeping mine for the tax saving element as I use all my ISA allowances each year in Stocks and Shares ISA. Fixed 5 year 4-5% cash Isa's are now maturing and current rates are very poor. My S&S Isa's have given c. 15-20% p.a. returns over the last few years but at a much much higher risk profile....and no guarantees there.