Should I renew NS&I Index Linked for another 5 years? Seems such a long time.

Middle_Sister

I have a 5 year NS&I Index Linked a/c maturing shortly but I have worked out I will only be getting about £770 interest on my original investment sum.  I've tried to work out the interest rate which to me looks like its 0.6%. That can't be right surely. 

Thanks for all your help.

I had another look and found my original investment was £20,037.82 and am on course at maturity to get £24,918.76.  That looks much better (I think).

It was for 5 years index linked +0.01% tax free CPI.

I think that works out at 5% allowing for the tax free bit.

Should I renew for another 5 years do you think? I don't need the money but 5 years seems a helluva long time.  What if I die? Will my spouse be able to take it over or cash it in?

Hoenir

Without more details impossible to comment. 

Middle_Sister

Hoenir said:

Without more details impossible to comment. 

I invested £24,148 and will get £24,918. 

ColdIron

Well that's 3.188% for a start but it still sounds wrong. Or do you mean 0.6% pa over 5 years?

Are you just looking at the Interest Capitalisation and ignoring the Index Linked Return?

I reinvested in May 2021 but my 2018/2023 return is over 25%

Kim_13

What is the linking? CPI? The return for 2019-2021 won’t be great (nil for a time I suspect) but 2022-2024 would be much better.

ColdIron

CPI + 0.01%

slinger2

Perhaps try https://www.nsandi.com/ilsc-calculator

It won't let you put a date before 1 May 2019 but presumably is fairly accurate for that date. Also depends on whether you're linked to the RPI or the CPI.

ColdIron

Good point, they switched from RPI to CPI May 2019 and the OP must have reinvested around then in 2019. Still wouldn't explain the very low figures though

slinger2

No. Even using CPI there's a 25% return or £6000, so should be about £30,000.

soulsaver

CPI 22-23 c 8.0%; 23-24 c.3.45% IIRC