NS&I to shaft savers again. RPI to CPI (index linked bonds)

RG2015

C_Mababejive wrote: »

OK so all index linked bond holders should be grateful as its still a good deal and they could refuse renewals.


Clearly they would never do that. There would be a sudden outflow of cheap cash. Im not sure how much is locked up in index linked products but it must be substantial even by national budget terms and it is real money, not fake money.

Are you able to explain what fake money is?

Biggus_Dickus

RG2015 wrote: »

Are you able to explain what fake money is?

https://www.ebay.com/itm/3-Funny-Arnold-Schwarzenegger-Fake-Money-8-Dollar-Bill-GAG-GIFT-/321300628617

RG2015

I can trump that (and I'm sure Donald can too)

https://www.bbc.co.uk/sport/football/45886746

PS: Yes he can!

https://www.amazon.com/Authentic-Donald-Trump-Plated-Collectors/dp/B07BF89LQ7

talexuser

There is an article behind the Telegraph paywall today which claims a "trick" can be used by existing RPI holders using a "little known perk"

https://www.telegraph.co.uk/personal-banking/savings/use-trick-beat-600m-nsi-cuts/

Can anyone read further to see what it is?

RG2015

talexuser wrote: »

There is an article behind the Telegraph paywall today which claims a "trick" can be used by existing RPI holders using a "little known perk"

https://www.telegraph.co.uk/personal-banking/savings/use-trick-beat-600m-nsi-cuts/

Can anyone read further to see what it is?

New certificates purchased prior to May next year will retain the link to RPI, meaning payouts will be protected until as far in the future as 2024.

Someone with a three-year certificate maturing before May 2019 can swap it for a five-year certificate, maturity in 2024.

A spokesman confirmed: “Upon maturity of a three-year certificate, a customer can mature into a five-year certificate. As long as the customer matures before May 1 2019 they will continue to receive RPI for the full length of their certificate.”

londoninvestor

C_Mababejive wrote: »

There would be a sudden outflow of cheap cash. Im not sure how much is locked up in index linked products but it must be substantial even by national budget terms and it is real money,not fake money.

No,what they want is to keep the money but pay less for it.

If the government were particularly keen to borrow money through ILSCs, then they wouldn't have stopped selling new ones (i.e. not renewals) in 2011. That wasn't done for lack of demand.

Now I also don't think they'll refuse renewals, because that would be unpopular with existing savers, who are also voters... But if it was purely about the costs of financing the debt, it would be cheaper not to renew ILSCs, and issue additional index-linked gilts to cover the gap.

talexuser

RG2015 wrote: »

New certificates purchased prior to May next year will retain the link to RPI, meaning payouts will be protected until as far in the future as 2024.

Someone with a three-year certificate maturing before May 2019 can swap it for a five-year certificate, maturity in 2024.

A spokesman confirmed: “Upon maturity of a three-year certificate, a customer can mature into a five-year certificate. As long as the customer matures before May 1 2019 they will continue to receive RPI for the full length of their certificate.”

Not that much of a "trick" then. If you mature before then fine , if not then the lower rate. Big Deal. Rocket science article! :rotfl:

Thrugelmir

C_Mababejive wrote: »

But at the same time, they want to shaft consumers by using RPI when it suits them, ie on the income side of the equation.

The Treasury should act fairly towards all taxpayers. Not those with a chip on their shoulder because it impacts them personally. A commercial finance house wouldn't offer an interest rate far above that of it's competitors. When there's no need to.

nrsql

>> There is an article behind the Telegraph paywall today which claims a "trick" can be used by existing RPI holders using a "little known perk"

Given that all ILSCs must have been rolled over by now I suspect that "little known perk" is known to everyone to whom it applies.

The last one's sold were May - Sept 2011 5 year, a re-introduction when a lot were taken out.
They will have been rolled over in 2016 to 2021 - the same as a 3 year now.
Wonder if that's a coincidence. Wish I'd started converting to 5 year earlier.

Anyone know how to download a list of the certificates from the NS&I site?

RG2015

nrsql wrote: »

>> There is an article behind the Telegraph paywall today which claims a "trick" can be used by existing RPI holders using a "little known perk"

Given that all ILSCs must have been rolled over by now I suspect that "little known perk" is known to everyone to whom it applies.

The last one's sold were May - Sept 2011 5 year, a re-introduction when a lot were taken out.
They will have been rolled over in 2016 to 2021 - the same as a 3 year now.
Wonder if that's a coincidence. Wish I'd started converting to 5 year earlier.

Anyone know how to download a list of the certificates from the NS&I site?

Are these any help?

https://www.nsandi.com/historical-interest-rates#10

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