Next issue NS&I index linked certs

norm_diploom

Sorry I may be a little slow, since this is a new area for me - can you just buy certs in trust for another adult using the NS&I standard forms, or do you need to involve solicitors to set up a trust?

Thanks,
Norm

martinman3

For some reason the forms for investing in trust are not downloadable from the www.nsandi.com website, well I can't find them. The application form you get from Post Office says that you should call on 0845 964 5000 and they will send you one.

isofa

When the savings certs reach maturity, and you have the option of rolling them over for another 3 or 5 years depending on the original choice, I assume you then get the interest rate of the current issue at the time of maturity, rather than your old rate?

barak

isofa wrote: »

When the savings certs reach maturity, and you have the option of rolling them over for another 3 or 5 years depending on the original choice, I assume you then get the interest rate of the current issue at the time of maturity, rather than your old rate?

You actually get the rate available when they offer the rollover, even if a new issue with lower rates has been announced between then and the maturity.

MiserlyMartin

I've spoken to a financial advisor who advised me to put my money in a stocks and shares ISA instead of NS&I. He tipped me a good fund thats had about 25% growth. I don't know what to do. I know a lot of people on here would say stocks and shares ISAs are too risky, but his advice is too low risk means low returns. He says inflation will eat the small return from this bond.

2nd opinion anyone?

Fella

MiserlyMartin wrote: »

I've spoken to a financial advisor who advised me to put my money in a stocks and shares ISA instead of NS&I. He tipped me a good fund thats had about 25% growth. I don't know what to do. I know a lot of people on here would say stocks and shares ISAs are too risky, but his advice is too low risk means low returns. He says inflation will eat the small return from this bond.

2nd opinion anyone?

It depends very largely upon your investment timeframe. If you're investing long-term (10 years +) the historically the stock market tends to massively outperform cash. But that's no guarantee it always will.

If you're talking short-term (5 years or less) I certainly wouldn't blithely advise someone to go for stocks.

Of course there are many other factors, i.e. how much you can afford to lose, your personal risk appetite, size of investment, purpose of investment....

Aegis

MiserlyMartin wrote: »

I've spoken to a financial advisor who advised me to put my money in a stocks and shares ISA instead of NS&I. He tipped me a good fund thats had about 25% growth. I don't know what to do. I know a lot of people on here would say stocks and shares ISAs are too risky, but his advice is too low risk means low returns. He says inflation will eat the small return from this bond.

2nd opinion anyone?

Sounds a lot like a tied agent... Did he show you how the fund would match your risk profile? Did he explain the potential pitfalls of stock market investments? Did he recommend that you diversify to reduce the performance risk?

Oh, and which fund did he recommend?

martinman3

MiserlyMartin wrote: »

He says inflation will eat the small return from this bond.

That is precisely what can't happen since this product is index-linked to the RPI.

The other fixed rate products from NS&I can easily be beaten elsewhere and are probably what he is referring to. Draw you own conclusions.

MiserlyMartin

Well that was his point. He said that whatever RPI Inflation does, the product is only 1.35% above it, and said that it was a poor return.

No hes an IFA and pensions adviser. I don't have the name of the fund to hand, its on my work email.

Re. Aegis, Risk profile. He knows my attitude to risk, but thinks I have too much cash invested. Told me that if it falls its a good buying opportunity.

I'd love to think that I could beat returns from cash ISA's but at the moment I am wary of the markets. He advised emerging market funds.

Biggles

MiserlyMartin wrote: »

I've spoken to a financial advisor who advised me to put my money in a stocks and shares ISA instead of NS&I. He tipped me a good fund thats had about 25% growth.

Could it be that he gets commission from the fund and not from NS&I?

Well that was his point. He said that whatever RPI Inflation does, the product is only 1.35% above it

£30k invested tax-free. You can only invest £7k in a S&S ISA, even if it were a good time on the stock markets (which it isn't).