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Cash in Index-linked NS&I Certificate

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I have £19K in a 3 year Index-linked Certificate from the NS&I. It pays 0.01% interest on top of CPI inflation which is 0.9% to January 21. Gains are tax free.
It matures 18/05/22 and the penalty for early exit is "
The equivalent of 90 days' interest on the amount you cash in will be deducted from your payment. And you won't earn any index-linking on the whole Certificate for the investment year in which you cash in, even if you only cash in part of it."
My investments are 2/3 cash (2.01% ISA and premium bonds) and 1/3 shares (some out oof ISA wrapper). I do want to buy a more expensive house in the next 5 years so don't want to go too deep into shares but if you were me would you be ditching the NS&I index-linked product to invest in a non-ISA fund?
Thanks

Comments

  • Albermarle
    Albermarle Posts: 27,754 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    It is surprising really that NS&I let existing holders roll them over when they mature. As said above I hang on to mine as part of a diversified portfolio.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Holding index linked investments at the current time may prove to be a useful hedge. The global economy may bounce strongly in the short term with all the cash washing about. 
  • beeza650
    beeza650 Posts: 197 Forumite
    Eighth Anniversary 100 Posts Name Dropper Combo Breaker
    The thing is - yes they're indexed linked - but the interest beyond the index linking is 0.01% House prices are increasing WAYYYYY more than the 0.9% CPI. Way way more.
    Answer to qu above, 40% marginal tax bracket, 46, £19K as a percentage of total investments - ...smallish, single figures.
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