NS&I Index-Linked Savings Certificates

Biggles

The new 'online calculator' for the Index-Linked Savings Certificates is updated this morning http://www.nsandi.com/products/ilsc/calculator.jsp.

But can anyone suggest any reason why the valuations should be lower than the last edition of the calculator, which was as at 15 January, when the RPI has just turned upwards and there should be an extra 4 weeks interest included?

DeepSporran

It looks like an error in the calculator - I've just put in some of my numbers and compared with last month's, and as you say it's giving lower results.

Biggles

I think the key must be the fact that the actual Index figure fell in January - the fact that annual inflation, as measured by the RPI, went up slightly is due to the fact that the Index figure also fell in Jan 07.

Having said that, I still can't arrive at the same figure as the calculator does...

missile

I can't be bothered with that spread sheet and have little faith in the numbers. Just live in ignorance and hope that my cash will keep pace with inflation.

s100_2

when are the new issues out?

baldbloke_2

missile wrote: »

I can't be bothered with that spread sheet and have little faith in the numbers. Just live in ignorance and hope that my cash will keep pace with inflation.

I update the value of certificates on their anniversary which then becomes the new minimum-value but as people say I am constantly mystified by the values for the interim months. I think it's because we are looking at an annual change in the government's figures but a monthly change in the valuation spreadsheet. As you can tell I am none the wiser but I do try!

They're still an excellent buy and the sooner a new issue for each term comes out the better! Doesn't the Treasury want us to lend it any more money? and if not why not!?

BabyDragon_2

How do these actually work out when compared to standard decent rate savings account please??

The rates seem low to me but I'm obviously missing something??

If I was to put say 7k into a savings account at say 6% and also 7k into a NS&I index linked - what would do better over say 1,3, or 5 years??

I know its hard to say exactly but roughly??

Has anyone compared them in the past with actual results please??

Any advice would be much appreciated. :beer:
Sorry I'm just trying to get my head around them? I like the idea of the money being safe as houses and the fact that it will beat inflation but not sure how that actually pans out???

I've just cashed in an endowment recently and with all the talk about the banks - I guess I'm wondering would the NS&I be a better / safer bet - but I still want reasonable growth (I cashed it in because it wasn't growing) - if that makes sense?

MiserlyMartin

s100 wrote: »

when are the new issues out?

I believe they are out sometime in April. We can only guess if they will be better than the current deal. Personally I think the government has been greatly fiddling the CPI figures for a long time so it wouldn't surprise me if they are having a fiddle with the way they measure RPI too. Though the latest inflation reports look good for an increased RPI figure next month. Assuming its not fiddled down!

missile

BabyDragon wrote: »

If I was to put say 7k into a savings account at say 6% and also 7k into a NS&I index linked - what would do better over say 1,3, or 5 years??

I know its hard to say exactly but roughly??

Has anyone compared them in the past with actual results please??

If you open the spread sheet and enter as if you had deposited £7K 1,3 or 5 years previous, it will tell you what the value would be today. Remember the return is tax free.

Fella

MiserlyMartin wrote: »

I believe they are out sometime in April. We can only guess if they will be better than the current deal. Personally I think the government has been greatly fiddling the CPI figures for a long time so it wouldn't surprise me if they are having a fiddle with the way they measure RPI too. Though the latest inflation reports look good for an increased RPI figure next month. Assuming its not fiddled down!

Is there any reason you think the new issue is out in April? I was under the impression there was no way of telling?

Thanks
Fella

Ologhai

Fella wrote: »

Is there any reason you think the new issue is out in April? I was under the impression there was no way of telling?

I believe you are correct.

New issues used to come out about a couple or so times a year, but the current issues (of both 3- and 5-year certificates) were released around May '07 (I think).

I don't know why the release of new issues has reduced in frequency.

If MiserlyMartin really does know about an issue release in April, then maybe he has insider info!