NS&I Index Linked Savings

Zarjaz

I've just had a letter from NS&I about my index linked savings certificate, which matures in May. I will have £20,400 at maturity. I can renew for another 3 years, at CPI + 0.01%. Or, for a shorter period. 

My plan is to let it roll over for another 3 years, but is this the right move? I won't need the money for many years.

Dazed_and_C0nfused

Which months CPI figure will be used?

brass_in_pocket

Grab it with both hands; with CPI at 7% and unlikely to drop to low levels very soon, there aren't any normal savings rates to match it.

Zarjaz

That's what I thought. 

There's also the option to renew for 5 years, rather than 3. Not so sure about that though. Perhaps I should. Penalty for early withdrawal is 90 days interest...

Aminatidi

I have some that rolled over last year.

Right now it seems a no-brainer to keep them.

brass_in_pocket

The interest penalty is nothing at 0.01% but watch out for no index-linking at all in the year in which an early repayment is made.

Any early withdrawal should, if possible, be made just after the annual index-linking is paid.

diystarter7

I've looked online but can't find a link to new index-linked savings. Have they stopped new applications? If not,
what is the interest rate atm and how do I join them and what is the minimum limit to join and term, please.

MX5huggy

diystarter7 said:

I've looked online but can't find a link to new index-linked savings. Have they stopped new applications? If not,
what is the interest rate atm and how do I join them and what is the minimum limit to join and term, please.

They have not been available for new subscriptions for a long time. NS&I don’t need to be offering 7% interest rates to claw in the money. 0.9% on Premium Bonds was enough to see it far exceed it’s target for new deposits. 

tebbins

CPI is 7%, Chase is offering 1.5%, you do the maths.

Stubod

...IMHO a no brainer to rollover for 5 years assuming you don't need the money for that length of time. Been doing that with ours for the last few years

Alice_Holt

I will be renewing mine for the maximum 5 years, based on the possibility that HMG might at some point end the ability to reinvest in further issues. At 7% it's expensive borrowing for HMG.