NS&I Indexed linked Savings

missile

Hi,


I have received my annual certificate.


I invested £20,051.79 on 27th March and balance is now £20324.19 i.e. +272.40 or 1.358%.


Would you suggest that I should cash this in and transfer to my Nationwide Flex Direct and Santander 123 accounts?

bowlhead99

It depends whether you want to get ongoing access to a tax free inflation protected government backed store of cash, or whether you would prefer to surf around whatever deals are available hoping to always beat inflation yourself. In the long run you may find it a challenge to do the latter.

Personally I would quite like access to the NSANDI index linked certificates but they are so (potentially) expensive for the government, that they're not making them available to anyone who doesn't already have them, allowing renewals only.

The 1.x% return you got over the last year was a historic rate and not an indicator of the future long term rate. The nationwide interest rate is 5% now but only on a small amount of money and drops by four fifths once the account has been open a year. Presumably you already have it filled anyway, if you had enough spare cash that you were locking some away for the long term with NSANDI.

kidmugsy

bowlhead99 wrote: »

Personally I would quite like access to the NSANDI index linked certificates but they are so (potentially) expensive for the government, that they're not making them available to anyone who doesn't already have them, allowing renewals only.

Yep. We're keeping our old-style ILSCs until they mature. Whether to roll them over into the inferior new-style ones will be decided at the time. But they are, literally, irreplaceable, so we might soldier on. They are anti-inflation insurance.

missile

Thx for your comments.

missile

bowlhead99 wrote: »

Please be advised: My NS&I is a roll over of one of my Index Linked Savings Certificates. I took it out before NW Flex Direct accounts were available.

ManAtHome

kidmugsy wrote: »

Yep. We're keeping our old-style ILSCs until they mature. Whether to roll them over into the inferior new-style ones will be decided at the time

I've rolled some over - have been moving the 5 year ones into 3 years as they're all the same next-to-nowt + inflation (unless I'm missing something).

missile

Like others I rolled them over as a hedge against inflation.


However, I am beginning to feel they may not be worth keeping since NS&I changed the way they calculate inflation?

masonic

ManAtHome wrote: »

I've rolled some over - have been moving the 5 year ones into 3 years as they're all the same next-to-nowt + inflation (unless I'm missing something).

Still looking much better than index linked gilts, which are currently priced to deliver inflation-1% if bought today.

So if inflation returns to 3% in 2016, as it is predicted to do, these might not seem quite so bad. Especially if you earn >£1,000 in interest and would have to pay tax on some of it.

masonic

missile wrote: »

However, I am beginning to feel they may not be worth keeping since NS&I changed the way they calculate inflation?

These are still measured using the original RPI (unless I've missed a really significant change). Not the European Harmonisation Index aka CPI or the geometric mean distorted RPIJ figure.

veryintrigued

missile wrote: »

Hi,

I have received my annual certificate.

I have some 2011 variant of these and cant recall ever receiving such a document.

ManAtHome

You get the updates for investments from around Sept 2012 onwards when they went all onliney.