Have we got too much in index linked savings?
My wife and I have a large proportion (over 40%, in 6-figures) of our savings invested in NS&I index-linked certificates. Whilst these have done very poorly at times, we've stuck with them and in recent years we've had exceptional returns - as much as 13.4% on the ones that are still indexed on RPI (which will be up for renewal early next year).
Looking at the schedule of renewal dates for our certificates, the early cash-in option that has been removed will now mean that from next year most of the money invested would be unavailable to us for either 3 or 5 years, as most are up for renewal. Some certificates were renewed immediately prior to the change in rules, but these are in the minority.
We're unsure whether having such a high proportion of these certificates is a good thing - should we be looking to diversify more? It's taken a long time to get a really good return on these and a repeat of the almost zero-return years would be quite depressing. We're both tax payers at the standard rate and have zero appetite for risk.
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