NS&! Index Linked Savings Cert maturing

castle96

on 25/5. Was RPI +0.1% (5 yr term), now CPI + 0.1% (2/3/5 yrs). Dont need the money, but can I get a better return??

Stubod

...probably not...we will be rolling our over (again), when their time comes. At least you know they will keep pace with inflation...

castle96

you are not put off by the changee to CPI?

Stubod

..not really as I am assuming they will still offer a better overall return than any of the current "savings" accounts. Also suppose it depends on what other accounts you have? We have already maxed out on Premium Bonds and also have some money in investments.

eskbanker

castle96 said:

on 25/5. Was RPI +0.1% (5 yr term), now CPI + 0.1% (2/3/5 yrs). Dont need the money, but can I get a better return??

Nobody knows, because you're effectively comparing a variable rate product with fixed term ones (easy access accounts will generally be below inflation), so it's just guesswork.  There have been numerous threads posing the question about whether these are worth renewing and the collective view is almost always 'yes', but it's impossible to be sure....

FatherTireseus

I think the rate of interest over and above CPI is 0.01%, not 0.1% 

I have a few of these and I let them roll over into new certificates.  They're tax free, and haven't been on sale for ages so if you cash them in, you can't just buy some more to replace them (not that this is a reason in itself to hold onto them).

Inflation is forecast to increase to between 1.5 - 1.9% over the next couple of years so you'd have to consider if you think you could do better elsewhere.  That decision will partly depend on your tax position. 

If you didn't pay any tax anyway, or your income was low enough to benefit from the £5,000 starter rate for savings and the £1,000 personal savings allowance, you might be able to get better than 1.9% in a couple of years time if banks up their interest rates to savers.  If - not a certainty that they will, even if inflation goes up.   But if you did pay tax then the saving certificates are tax free, effectively improving the rate in comparison to other taxable investments.  It's also one less item to have to remember to put on your tax return, if you do one.

talexuser

I'm rolling over just for the tax position, max premium bonds notwithstanding. The chances of beating it with inflation going up are less than the chances of not beating inflation with current and future rates.

polymaff

While they're rolloverable, we'll be rolling over.  Not quite so easy to be sanguine about NS&I GGB and GIB rollovers.

Anyone seen any info on the NS&I recovery bonds mentioned in the last Budget?

Albermarle

https://forums.moneysavingexpert.com/discussion/6260919/ns-i-index-linked-bonds-renew-or-cash-in#latest

colsten

polymaff said:

Anyone seen any info on the NS&I recovery bonds mentioned in the last Budget?

If you mean the green bonds - - I am eagerly awaiting details myself. They could perhaps be a better choice than the index-linked saver. I wish they'd get on with it and announce some further details - -  but then, I wouldn't be surprised if they left it until just before the COP26, so they can make a song and dance over it, and nobody will know yet whether they are a success or a flop.

Here's what Sunak said:




And a bit more in the Budget document. "in the summer of 2021".

polymaff

colsten said:

polymaff said:

Anyone seen any info on the NS&I recovery bonds mentioned in the last Budget?

If you mean the green bonds - - I am eagerly awaiting details myself. They could perhaps be a better choice than the index-linked saver. I wish they'd get on with it and announce some further details - -  but then, I wouldn't be surprised if they left it until just before the COP26, so they can make a song and dance over it, and nobody will know yet whether they are a success or a flop.

That's the one.  The rate is the issue - particularly relevant to those with maturing GGBs and GIBs.

As the lady said: "Where's the Beef?"