NS&I Index-linked Savings - Renewal

Sceptic001

Yes, ILSCs automatically roll over to the same term as the maturing certificate unless you instruct NS&I otherwise.

PS. Sorry I misread your previous post. Ignore my question about 1-year 65+ bonds.

PPS. Don't hang on to a building society account in the hope of a windfall. Those days are sadly over. Equally your PO ISA almost certainly is paying a diabolical rate. Check out the link at the top of this page (Top savings accounts) for the best rates now available.

GillyFlower

I am going to deal with this all tomorrow including review of other savings.

Just a thought - going back to ILSCs. I know I can renew for another 5 years but just looking at paperwork what is the benefit of keeping to the 5 year term?

The interest is the same but is it because if their terms changed you know they have the commitment to you for 5 years. Whereas change to 3 years you are stuck with it and may loose an extra 2 years of benefit?

I know I sound a little naive but am grateful to anyone that can just re-assure me as to my benefit to stay 5 years if I can leave the money there.

tocsin

GillyFlower wrote: »

I am going to deal with this all tomorrow including review of other savings.

Just a thought - going back to ILSCs. I know I can renew for another 5 years but just looking at paperwork what is the benefit of keeping to the 5 year term?

The interest is the same but is it because if their terms changed you know they have the commitment to you for 5 years. Whereas change to 3 years you are stuck with it and may loose an extra 2 years of benefit?

I know I sound a little naive but am grateful to anyone that can just re-assure me as to my benefit to stay 5 years if I can leave the money there.

I guess it's the fact they can't change the terms within the five years!

I have a mix of 3 and 5 year bonds, the 5 year one retained the RPI+1% deal for longer than most of the 3 year ones.

Having said that, they can't reduce the +% much more

GillyFlower

Mmm.... thank you. So stick with 5 year and if going to need money withdraw at the right time i.e. at anniversary date if I have understood this correctly.

masonic

tocsin wrote: »

I guess it's the fact they can't change the terms within the five years!

There are actually provisions within the terms to replace the measure of inflation used in the index linking during the term.

poppy10_2

masonic wrote: »

There are actually provisions within the terms to replace the measure of inflation used in the index linking during the term.

No, there aren't

bigadaj

tocsin wrote: »

I guess it's the fact they can't change the terms within the five years!

I have a mix of 3 and 5 year bonds, the 5 year one retained the RPI+1% deal for longer than most of the 3 year ones.

Having said that, they can't reduce the +% much more

They could go negative, which given what has happened to wider government bonds isn't out of the question.

masonic

poppy10 wrote: »

No, there aren't

https://www.nsandi.com/files/published_files/asset/pdf/index-linked-savings-certificates-key-features.pdf

See clause (3m): “RPI” means the Retail Prices Index compiled by the Office for National Statistics, or any Index replacing it

Eco_Miser

But that provision would only apply if the ONS stopped compiling the RPI, I believe they've said they have no intention of discontinuing compiling RPI .

masonic

Eco_Miser wrote: »

But that provision would only apply if the ONS stopped compiling the RPI, I believe they've said they have no intention of discontinuing compiling RPI .

That's what I thought too, but it seems the head of NS&I has a different opinion: https://forums.moneysavingexpert.com/discussion/comment/69513963#Comment_69513963