NS&I Index Linked Saving Certificates

kidmugsy

When my 5-year one matures later this year I'm tempted to replace it with a mixture of 3-year and 5-year. That way if I need money out in an emergency probably only one of them will have to pay the penalty for early withdrawal. I'm gambling that rollover won't be stopped at some point in the next few years: if I thought that likely I'd probably stay in the 5-year issue.

balf

I've stuck with mine and with rpi at 1.6 tax free they are better than most taxed 3year deals. The pound is down which SHOULD boost inflation, and if it rises to, say, 2.5/3 by year end as some are forecasting they could look well worth holding.

Look out for goalpost moving though.

David.

AnotherJoe

If you've maxxed out the other alternatives like Santander they are a one-way bet.

Inflation looks nailed on to increase for the next couple of years, and should they do a switch from RPI to CPI and you dont fancy that, then as long as you time it right and dont do something dumb like cash it in the day before a yearly anniversary the losses are trivial.

So extending for the max 5 and not 3 years is the thing to do, since I think its quite likely they wont renew in 3 years time (or they might offer only a CPI version at roll over time).

Indeed from a public relations POV thats the time to make the change and not make it retrospective eg say in a years time as that would annoy a lot of[STRIKE] conservative voters[/STRIKE] elderly people who in the main hold these.