NSI Index linked bond value not changing for 5 months??

junebaby

Probably the fact that you can’t take the money out for the term and cash ISA rates are looking much better.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81947195#Comment_81947195

The two products are not really comparable, as after 3 years, one will probably have outperformed ( or underperformed) the other. However impossible to say in advance which one.

Ideally you should have both to hedge your bets.

fuzzzzy

I'll be renewing mine if I can. Otherwise the funds will just end up in taxable accounts.

molerat

3 maturing in May / Jun and will be part renewing all of them.

masonic

It would be worth considering whether index linked gilts would serve a similar purpose with better accessibility (albeit with some capital risk if accessed early) and a better real return than ILSC.

Most are low coupon and hence very tax efficient, but not entirely tax exempt.

brewerdave

My ILSC matures the end of June - I'll roll it over if possible - just keeps my eggs out of one basket !!

Just worked out that expected annualised return is ~ 3.5% = 4.4% gross - not very impressive as it started as RPI + 0.5% in 2011 - looks like a chunk will be going into ISAs or elsewhere.

fuzzzzy

https://forums.moneysavingexpert.com/discussion/comment/81947312#Comment_81947312

I know I should be looking into gilts. Just a matter of finding the time and energy to read up and understand them.