What is a NS&I Index linked Cert?

nicko33

Fella wrote: »

The thing to be aware of with these is that although they are 3 or 5 year term you DON'T have to keep them that long to get a decent interest rate. As long as you keep them for at least a year you get a good rate.

Thanks!
I hadn't really looked at the full T&C before

e.g.
from http://www.nsandi.com/products/ilsc/howitworks.jsp
Index-linked Savings Certificates are lump sum investments designed to be held for a set time called a “term”. Currently you can choose either a 3-year or a 5-year term. Or you can invest in both.
The rates of interest you’ll earn on top of inflation are fixed and guaranteed for the whole term. These fixed rates increase each year, so you’ll get the best return for your money if you keep your Certificates for the full term. If you do need your money earlier you can cash in your Certificates at any time. But you need to hold them for at least a year to benefit from index-linking and extra interest.

So I guess they do something like
year 1 - RPI + 1%
year 2 - RPI + 1.3%
year 3 - RPI + 1.6%
Anyone know what those actual rates would be?

edit:
nevermind, they tell you on http://www.nsandi.com/products/ilsc/rates.jsp
it's 1.1, 1.3, 1.66

Fella

RPI up to 4.1% today (from 4.0%).

'bout time they released a new issue of these....

Steve_xx

Fella wrote: »

RPI up to 4.1% today (from 4.0%).

'bout time they released a new issue of these....

If they were to release another issue, would they not lower the guaranteed interest bit of the equation due to the fact that RPI is set to run higher?

Fella

Maybe, but it's not that high already & there has to be some incentive. Don't forget most people see these as a 3 or 5 year fix & RPI could drop to nothing in that time.

Not that I'm expecting it to. Unless they rig it.