NS&I

poli123

Hello,
it’s that’s time again where I need to give my options to renew my 3 year index linked savings certificates for a 3 year or 5 year term ? Any opinions would be appreciated!  Thank you 

ColdIron

They are unique. Tax free index linking, what's not to like?

If you don't need the money where else would you put it?

I have the 5 year ones

poli123

ColdIron said:

They are unique. Tax free index linking, what's not to like?

If you don't need the money where else would you put it?

I have the 5 year ones

I was looking at what rate I would get versus regular savings account 

ColdIron

You didn't mention regular savings accounts

The rate you will get with ILSCs is 0.01% plus index linking to CPI. The length of the term does not change that

With regular savers you are limited to how much to can save monthly (~£250 to £500) and most of them only operate for a year

Apples and pears. Where will you keep the cash that you cannot contribute?

6022tivo

Move to 5 year in case they get pulled in three years time. 

Nothing to lose, you can cash them in at any time, if you cash them in at say three years, all you lose is 3 months interest at 0.01%.

You have that no lose (apart from 90 days of 0.01%) option every year, so 5 years is the better option in case in three years time, they pull it and you can't renew. 

Stubod

We have a few of these, and when the last couple came up for renewal a few months ago we changed them from 5 years to 3. Historically, on renewal we increased them all to the 5 year max., but as we are getting older we thought we may need the money at some point. OK they (gov.), may withdraw them, but people have been saying that for years, so we are happy to take the risk. As and when the others come up for renewal we will be changing them all from 5 to 3 years....horses for courses, but you can't live forever!! 

lithosyork

6022tivo said:

Nothing to lose, you can cash them in at any time, if you cash them in at say three years, all you lose is 3 months interest at 0.01%.
 

from ns&i website...

No access during the term

Previously, we gave you access to your investment before the end of its term but charged a penalty equal to 90 days’ interest on any money you took out early plus you would lose a year’s index-linking on the whole Certificate. Now, once you’ve decided to renew a Certificate from 23 July 2023 onwards, you won’t have access to your money until the Certificate reaches the end of its new term.

You will however have the right to cancel within 30 days of renewing your Certificate.

poli123

thank you all for the helpful responses!