NS&I index linked certificates

talexuser

My 5 yearers are up soon.

At first we had RPI, now a lower CPI.

At first we had plus 0.5%, now we have plus 0.01%.

You used to be able to cash in, and the best time to do so was on an anniversary, but you could at anytime if wishing to get at the money.

Now the next rollover is fixed with no withdrawals for the term.

Are they possibly getting worse? Seriously though do you think they are still worth it for a higher rate taxpayer just for the tax free status.

masonic

Not when you have low coupon index linked gilts as an alternative.

eskbanker

The main thing is to compare them against what else is available in today's market, rather than against what ILSCs used to offer, so you're effectively weighing them up against long term fixed ISAs (accessible with penalty) or fully inaccessible and taxable fixed term accounts, while simultaneously taking a view about what inflation and savings rates will do in the medium term.

Probably best to read through some of the other threads about these, as the question comes up pretty regularly?

Albermarle

NSI Index-linked Savings Certificates — MoneySavingExpert Forum