NS&I Index-linked Savings Certificate

Aliss08

Hi,

My index-linked savings certificate is reaching the end of its term.  They are changing from RPI to CPI so I would like to know if it’s worth reinvesting or not.  Thanks

soulsaver

NS&I ..renew or not ? — MoneySavingExpert Forum

tebbins

There are numerous threads about this in recent forum pages, the consensus is keep them, for the love of God keep them you lucky, lucky person.

Albermarle

Aliss08 said:

Hi,

My index-linked savings certificate is reaching the end of its term.  They are changing from RPI to CPI so I would like to know if it’s worth reinvesting or not.  Thanks

Well a typical savings account is paying 1 to 2% and CPI will probably be around 7% , so ........

Aliss08

Thanks all, I have renewed for 5 years.

MX5huggy

Ditch them, stick it to the government that you won’t be part of the race to the bottom. Why should we accept this if everyone cashed them in they would get the message and have to reconsider this retrograde step. 

Or maybe not 🤔

MDMD

MX5huggy said:

Ditch them, stick it to the government that you won’t be part of the race to the bottom. Why should we accept this if everyone cashed them in they would get the message and have to reconsider this retrograde step. 

Or maybe not 🤔

Not.

The NS&I accounts (p98, note 6) show they have £21 billion in savings certificates, of which not all will be indexed linked.

https://nsandi-corporate.com/sites/default/files/2021-08/NS%26I_Annual_Report_2020_21_accessible.pdf

The government wouldn’t care - it is probably a couple of weeks worth of gilt issuances if they needed to refinance that debt.

refluxer

Out of interest, why do NS&I continue to allow these bonds to be renewed ? Was it written into the product T&Cs ?

I'm just struggling to see what's in it for them and it seems to be the complete opposite to the low rates on offer with their current products !

Troytempest

I must admit that they do seem to be out of step with other products in the savings market. Very happy to hang on to them though......

John464

refluxer said:

Out of interest, why do NS&I continue to allow these bonds to be renewed ?

Politics
Angry voters, which would draw attention towards politicians favourite stealth tax - Inflation. 

JezR

The terms do say that they can stop offering Index-linked Savings Certificates in general, or ones with specific length.