NS&I Index Linked Certificate Renewal

dividendhero

Most inflation linking is now done to CPI rather than RPI - main reason being that CPI is normally lower. Also given index linked NS&I products are no longer available - it's a no brainer to renew

balf

I have a block of them bought whenever they were available over the years. Now sitting back to watch the magic of compounding work at 4%, tax and cgt free. Worth the years of low interest I think.

Every thing, well some comes to him who waits.

David.

RG2015

Index linked, tax-free and existing holders can get new ones when they mature. No bank would dream of doing this as it would lose them money.

So who actually funds this generosity? If only I had known about them 10 years ago. I would have the most enormous smug look on my face and be raising a glass to the British taxpayer.

capital0ne

redmalc wrote: »

I renewed mine for a further five years a year ago and the returns have been good

I always renew mine, but you can't really say returns are good, the returns are what they are, just a tad above inflation which means you're not losing money.

Most people don't seem to realise that money in the bank is actually going down in value.

For example all those people who cash in heir pensions, firstly stung for income tax, then they just stick it in the bank to lose more value - stupid or what!

gatters

RG2015 wrote: »

Index linked, tax-free and existing holders can get new ones when they mature.

Out of interest, what determines whether they allow renewals or not?

RG2015

gatters wrote: »

Out of interest, what determines whether they allow renewals or not?

The following statement appears on the NS&I listing of previous issues. I have shown the 3-year issue but there are many more.

3-year (Index-linking + guaranteed compound rate over 3 years)
(no Issue on general sale from 19 July 2010, only available to customers with a maturing Index-Linked Savings Certificate)

The link below is to a PDF of previous issues.

https://www.nsandi.com/files/published_files/asset/pdf/historical-interest-rates.pdf

gatters

Thanks. I just wondered how likely it is I'll be able to renew again. I regret renewing for 3 years instead of 5.

Morphoton

These are very good value as the market price of index linked gilts is RPI MINUS around the 1.5% to 2.0% mark. So holders of these are getting significantly more than the market rate. I have always renewed for five years and this year renewed some again that were originally purchased back in 1992. So that will be 30 years come maturity !

ffacoffipawb

Morphoton wrote: »

These are very good value as the market price of index linked gilts is RPI MINUS around the 1.5% to 2.0% mark. So holders of these are getting significantly more than the market rate. I have always renewed for five years and this year renewed some again that were originally purchased back in 1992. So that will be 30 years come maturity !

What was the value in 2017 compared to the original purchase price in 1992? Must have at least doubled??

Morphoton

What was the value in 2017 compared to the original purchase price in 1992? Must have at least doubled??

£10000 in 1992 is now £32614 after 25 years.