Got an NS&I savings certificate? You'll earn less if you renew now - MSE News

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Holders of National Savings & Investments savings certificates will see a drop in earnings if they let them renew from 1 May, as the savings provider has switched to using a different measure of inflation. So check yours now, as if you're affected you'll only have 30 days to leave penalty-free...
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'Got an NS&I savings certificate? You'll earn less if you renew now'
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Comments

  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    Am i missing the point of this?

    You'll see a "drop in earnings" if you dont renew since you'll have to put them in something else, and as long as you time the withdrawal you wont really miss out on each years payment anyway since the interest rate is nominal and its all about the CPI inflation cover.

    Good luck finding that something else who will guarantee to cover more than that (and isnt a scammer aka LC&F etc)
  • pochisoldi
    pochisoldi Posts: 265 Forumite
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    Another BS non-news MSE news article.
    My NS&I cert matures in about 3 weeks.
    I don't have a choice when I renew - I either renew or I don't.
    If I don't renew, I don't get any index linking of any kind, and I have to find somewhere else to put the money!
  • nrsql
    nrsql Posts: 1,919 Forumite
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    Ummm
    "will see a drop in earnings if they let them renew from 1 May"

    https://www.statslife.org.uk/economics-and-business/33-rpi-versus-cpi-what-s-the-difference-why-does-it-matter-will-it-make-you-poorer-or-richer

    I'm guessing they haven't thought about this being a statement about what will happen in the future.
    Not certain that year on year RPI will be higher than CPI nor that any deposit rates will turn out to be higher.
    Looks like clickbait and scaremongering.
  • londoninvestor
    londoninvestor Posts: 1,350 Forumite
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    pochisoldi wrote: »
    If I don't renew, I don't get any index linking of any kind, and I have to find somewhere else to put the money!

    And the government will have to find the money you lent it from somewhere else... but they won't be losing any sleep, because they can sell index-linked gilts yielding about RPI minus 2%, which costs them less than borrowing from you did!

    One of my favourite topics I know, but this is always worth reflecting on when the CPI-linked certificates are described as not being a good deal...
  • A_T
    A_T Posts: 959 Forumite
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    Just be thankful if you've got any to renew. There's a reason they don't issue these any more.
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