NS&I Index Linked

Glengowrie

I invested £10,000 redundancy money in these back in May 2011 intending to leave the sum in for the full 5 years. I now need to cash about half. Would it be sensible to leave the rest invested or are there better alternatives?

Stubod

..really depends on your time frame / future needs. At least with NS&I you get a guarantee that the money will at least keep pace with inflation..and there aren't any "savings" accounts that will do that at the mo..at least not without a lot of hassle. I think in 2011 the rates may have been a little better ie index with half a % or so on top?...the new ones only give index linking and a fairly pitiful extra percentage. You will also loose out if they are not kept in the full term, so you need to check this out...personally for that amount I would leave them be....

Lansdowne

If the certificates were 5-years ones bought in 2011 there will not be a penalty for cashing part or all of it in. As they were bought in May 2011 you need to ensure you don't cash it in before the anniversary, which is when the extra interest is added.

Glengowrie

Thanks for the advice. It was very helpful. Unfortunately I need to cash half to clear some debt but I will leave the rest with NS&I.