NSI Index-linked Savings Certificates

s45

Hi, I have now option to renew my NSI index linked savings which is maturing in less than a months time.  I have an option to renew for 2 years 3 years or 5 years.  To continue with a 3 year option I don't have to do anything.   I won't need the money for 5 years but not sure which option to choose.  Any advice will be greatly appreciated. Thanks.

Dazed_and_C0nfused

s45 said:

Hi, I have now option to renew my NSI index linked savings which is maturing in less than a months time.  I have an option to renew for 2 years 3 years or 5 years.  To continue with a 3 year option I don't have to do anything.   I won't need the money for 5 years but not sure which option to choose.  Any advice will be greatly appreciated. Thanks.

Including the interest rate offered for each option might be useful.

s45

says: 
3 year term - Index linking to CPI + 0.01% tax-free / AER
5 yeara term - index linking to CPI + 0.01% tax-free / AER

Richard1212

Not worth renewing. Plenty of good fixed savings accounts out there---and don't forget that CPI is falling.

IanManc

s45 said:

Hi, I have now option to renew my NSI index linked savings which is maturing in less than a months time.  I have an option to renew for 2 years 3 years or 5 years.  To continue with a 3 year option I don't have to do anything.   I won't need the money for 5 years but not sure which option to choose.  Any advice will be greatly appreciated. Thanks.

Seeing you can no longer make any withdrawals during the term I'd suggest you choose the 2 year renewal if you're offered it.

Previously a 2 year renewal was only offered to people with maturing 2 year certificates. Are you sure that you've been offered the chance to renew a 3 year certificate for 2 years? If so, that would be a welcome change as far as I'm concerned.

Of course there's always the risk that they might stop renewals altogether, which would favour picking the longest renewal term possible, but 5 years is a long time to have no prospect of access to your money.

My certificates all have 5 year terms, but because of the removal of the possibility of withdrawals I'll renew mine for the shortest possible period available in future, thought I don't have any maturing now until the middle of next year.

s45

IanManc said:

s45 said:

Hi, I have now option to renew my NSI index linked savings which is maturing in less than a months time.  I have an option to renew for 2 years 3 years or 5 years.  To continue with a 3 year option I don't have to do anything.   I won't need the money for 5 years but not sure which option to choose.  Any advice will be greatly appreciated. Thanks.

Seeing you can no longer make any withdrawals during the term I'd suggest you choose the 2 year renewal if you're offered it.

Previously a 2 year renewal was only offered to people with maturing 2 year certificates. Are you sure that you've been offered the chance to renew a 3 year certificate for 2 years? If so, that would be a welcome change as far as I'm concerned.

Of course there's always the risk that they might stop renewals altogether, which would favour picking the longest renewal term possible, but 5 years is a long time to have no prospect of access to your money.

My certificates all have 5 year terms, but because of the removal of the possibility of withdrawals I'll renew mine for the shortest possible period available in future, thought I don't have any maturing now until the middle of next year.

You r right, option for 2 years not available.  Only 3 or 5 years.  I don't think I will need the money for another 5 years but judging from the comments from Richard1212  as well, I think I will choose the existing 3 year option.  

Thanks a lot.

ColdIron

I've renewed for 5 years twice now and usually recommend others do the same if you don't need the money on the basis that they might stop offering it, but in 2026 I will likely go for three years. As there are no longer any withdrawals and I will be over state pension age it feels prudent to do so. 15 years isn't a bad run

Stubod

..we will be changing all ours to 3 years given that we are now " of a certain age", and no early closures are allowed. If they do not allow another term after that then so be it..

marlot

Stubod said:

..we will be changing all ours to 3 years given that we are now " of a certain age", and no early closures are allowed. If they do not allow another term after that then so be it..

Yes.  These savings were previously our Emergency Fund.  But as we can no longer access them at will, they're much less attractive.

Albermarle

s45 said:

IanManc said:

s45 said:

Hi, I have now option to renew my NSI index linked savings which is maturing in less than a months time.  I have an option to renew for 2 years 3 years or 5 years.  To continue with a 3 year option I don't have to do anything.   I won't need the money for 5 years but not sure which option to choose.  Any advice will be greatly appreciated. Thanks.

Seeing you can no longer make any withdrawals during the term I'd suggest you choose the 2 year renewal if you're offered it.

Previously a 2 year renewal was only offered to people with maturing 2 year certificates. Are you sure that you've been offered the chance to renew a 3 year certificate for 2 years? If so, that would be a welcome change as far as I'm concerned.

Of course there's always the risk that they might stop renewals altogether, which would favour picking the longest renewal term possible, but 5 years is a long time to have no prospect of access to your money.

My certificates all have 5 year terms, but because of the removal of the possibility of withdrawals I'll renew mine for the shortest possible period available in future, thought I don't have any maturing now until the middle of next year.

You r right, option for 2 years not available.  Only 3 or 5 years.  I don't think I will need the money for another 5 years but judging from the comments from Richard1212  as well, I think I will choose the existing 3 year option.  

Thanks a lot.

Questions about whether it is worthwhile carrying on with these index linked certificates have come up many times before.
As they are a relatively unique product tracking inflation, with no new issues for many years, the answers are usually almost 100% to keep them.
but judging from the comments from Richard1212  , which are an outlier/exception that proves the rule.

talexuser

Also the tax free status comes into calculation compared with savings rates which would incur tax.