Ns&i savings certificates

poli123

Hi 
I have received a renewal notice about my index linked certificates about whether to reinvest or not ? its about £14k , can lock the cash away so don’t need immediate access but rate now is linked to cpi( currently 0.9%?)  as opposed to rpi so less that previous . Any advice what to do ?

eskbanker

The fact that these use CPI rather than RPI makes them less generous than before, but the basis of your comparison now needs to be what you could get on that money elsewhere.  As ever you're taking a punt on what inflation will do over the next 3/5 years when weighing these up against fixed-term ISAs or taxable savings accounts, and your own circumstances (other assets, tax status, etc) should be part of your consideration, but many on here (including yours truly) do let them roll over each time....

Albermarle

Although not as attractive as they were , if you want a guaranteed inflation linked investment then better to stick with them .
There have no new issues for a few years now , so if you cash it in , it is unlikely you will be able to buy a new one in future ( when inflation might increase a lot) 
but many on here (including yours truly) do let them roll over each time.... 
Same for me.....

MiserlyMartin

CPI not RPI. It just gets worse for Britains embattled savers. This government are screwing the prudent over to pay for the reckless. How are they going to balance the books regarding this criminal insane amount of borrowing as they pay for so many people to sit at home? Terrible tax ahead but for who? Better not be savers. We can revolt at the ballot box a large amount of conservative voters are savers. If they are thinking of doing anything to the state pension, then they lose most of their votes

eskbanker

MiserlyMartin said:

CPI not RPI. It just gets worse for Britains embattled savers. This government are screwing the prudent over to pay for the reckless. How are they going to balance the books regarding this criminal insane amount of borrowing as they pay for so many people to sit at home? Terrible tax ahead but for who? Better not be savers. We can revolt at the ballot box a large amount of conservative voters are savers. If they are thinking of doing anything to the state pension, then they lose most of their votes

Unconvinced that NS&I's change from RPI to CPI (announced in 2018 and implemented in May 2019, well before the last general election) was really a valid jumping-off point for the extended rant and rallying cry for revolting against the government!  The announcement of CPI instead of RPI for state pension increases is coming up to its tenth anniversary in a couple of weeks time....

Socajam

I have 18k in my Natwest savings account - received 0.04 interest for May, so count yourself lucky.
I remember the days when I use to receive over 18 pounds per month.
I have now moved a large 30k into Premium Bonds since late last year
To date I have won every month from March(2020)  75 pounds, April 75 pounds, May 25 pounds and June 75 pounds
I have won 250 pounds since March, how's that for obtaining interest on your money so far this year.

masonic

Socajam said:

I have now moved a large 30k into Premium Bonds since late last year
To date I have won every month from March(2020)  75 pounds, April 75 pounds, May 25 pounds and June 75 pounds
I have won 250 pounds since March, how's that for obtaining interest on your money so far this year.

You have been very lucky. Only about 1 in 30 people achieve such a good outcome with premium bonds. On average, people win about £350 a year if investing £30k. Be prepared for your luck to average out.

MiserlyMartin

eskbanker said:

MiserlyMartin said:

CPI not RPI. It just gets worse for Britains embattled savers. This government are screwing the prudent over to pay for the reckless. How are they going to balance the books regarding this criminal insane amount of borrowing as they pay for so many people to sit at home? Terrible tax ahead but for who? Better not be savers. We can revolt at the ballot box a large amount of conservative voters are savers. If they are thinking of doing anything to the state pension, then they lose most of their votes

Unconvinced that NS&I's change from RPI to CPI (announced in 2018 and implemented in May 2019, well before the last general election) was really a valid jumping-off point for the extended rant and rallying cry for revolting against the government!  The announcement of CPI instead of RPI for state pension increases is coming up to its tenth anniversary in a couple of weeks time....

I was more thinking about the possible axing of the triple lock. Yes I know the labour party will be much much worse and so do most people, but the Tories really need to watch it. I would vote Labour if they do anything to the state pension to reduce it.

eskbanker

MiserlyMartin said:

eskbanker said:

MiserlyMartin said:

CPI not RPI. It just gets worse for Britains embattled savers. This government are screwing the prudent over to pay for the reckless. How are they going to balance the books regarding this criminal insane amount of borrowing as they pay for so many people to sit at home? Terrible tax ahead but for who? Better not be savers. We can revolt at the ballot box a large amount of conservative voters are savers. If they are thinking of doing anything to the state pension, then they lose most of their votes

Unconvinced that NS&I's change from RPI to CPI (announced in 2018 and implemented in May 2019, well before the last general election) was really a valid jumping-off point for the extended rant and rallying cry for revolting against the government!  The announcement of CPI instead of RPI for state pension increases is coming up to its tenth anniversary in a couple of weeks time....

I was more thinking about the possible axing of the triple lock. Yes I know the labour party will be much much worse and so do most people, but the Tories really need to watch it. I would vote Labour if they do anything to the state pension to reduce it.

But what does any of that have to do with NS&I index-linked savings certificates?

MiserlyMartin

Because the government are spending like there's no tomorrow. It's not just pensions that will be cut, it will probably effect NS&I rates too.