Cash in Index Linked National savings certificates?

enthusiasticsaver

I have two investments in index linked National Savings Certificates _£5k invested in 2010 for 3 years which I rolled over in 2013 so will mature next May and £5k invested in 2011 for 5 years which will mature next May also. I have just received this year's statement showing that the rpi rate used this year was 0.90% so plus 0.15 this makes a grand return of 1.05% for the year.




Is it worth hanging on to them until next year or should I take them out and put into my Santander 123 account or stocks and shares isa? I can cash them in early apparently and because it will be after the 2nd anniversary/4th anniversary I will still keep the index linking such as it is but I am trawling through terms and conditions to see what the downside is. I am guessing that maybe the final year is a better return if I wait for them both to mature next May?

bigadaj

No simple answer.

I'd be tempted to keep them simply because the government aren't issuing them currently, and so it's an opportunity to maintain an asset class that isn't readily available.

Current returns aren't great but no worse than most savings accounts, and inflation protection is a valuable thing, with parts of the economy picking up.

alanq

enthusiasticsaver wrote: »

I am trawling through terms and conditions to see what the downside is.

Equivalent of 90 days interest penalty for early withdrawal from certificates bought/rolled over on or after 20 September 2012.

Glen_Clark

bigadaj wrote: »

inflation protection is a valuable thing, with parts of the economy picking up.

:rotfl:Rent increases are counted as GDP 'Growth' instead of Inflation