NS&I Index Linked (Again)

6022tivo

GillyFlower said:

Just trying to make a decision and reading through your thoughts - mine now are -

1. Despite our age keep to 5 year re-invest. (If I change to 3 year at the end of this period the option may not be there to continue who knows they may cease.)

2. If in that 5year period we needed some money we could withdraw all or some of it and know that interest is lost BUT it would be if I had it sitting in our bank current account. 

3. What remains in the account (if we withdraw) will start earning interest again the following year.

Do you think I have understood this correctly?

You'd be better off with 5 years. 

You can take it out at any year end point and keep the CPI, it is just the 0.1% for that year you will lose. 

So even if you wanted to take out at 1yr, 2yr and so on, you wouldn't lose the CPI for that year if you cashed it on the anniversary. 


EDIT - RPI/CPI Corrected..

masonic

6022tivo said:

GillyFlower said:

Just trying to make a decision and reading through your thoughts - mine now are -

1. Despite our age keep to 5 year re-invest. (If I change to 3 year at the end of this period the option may not be there to continue who knows they may cease.)

2. If in that 5year period we needed some money we could withdraw all or some of it and know that interest is lost BUT it would be if I had it sitting in our bank current account. 

3. What remains in the account (if we withdraw) will start earning interest again the following year.

Do you think I have understood this correctly?

You'd be better off with 5 years. 

You can take it out at any year end point and keep the RPI, it is just the 0.1% for that year you will lose. 

So even if you wanted to take out at 1yr, 2yr and so on, you wouldn't lose the RPI for that year if you cashed it on the anniversary. 

Any renewal will track CPI, not RPI