When is next issue of index-linked savings certificates?

RayWolfe

Well! That's proved everyone wrong. ;-)
http://www.nsandi.com/products/ilsc/rates.jsp

verdie

Looks like they have slashed the rates compared to the last issue http://www.nsandi.com/products/ilsc/rates.jsp Is there anyone out there who can do the maths to work out whether they are still a good deal for basic and higher rate tax payers compared to a a fixed rate 1 or 2 year savings bond? Its looking a lot more marginal but then I can't do the sums!

Fella

verdie wrote: »

Looks like they have slashed the rates compared to the last issue http://www.nsandi.com/products/ilsc/rates.jsp Is there anyone out there who can do the maths to work out whether they are still a good deal for basic and higher rate tax payers compared to a a fixed rate 1 or 2 year savings bond? Its looking a lot more marginal but then I can't do the sums!

http://forums.moneysavingexpert.com/showthread.html?t=833157

poppy10_2

What were the rates before?

RayWolfe

1.35% plus RPI

MiserlyMartin

New rate:
Guaranteed compound rate over 3 years Index-linking + 0.25%

Thats a pathetic rate. Glad I got the old issue. Maybe they know that RPI will be rocketing even higher over the next 3 years and are limiting their losses.

RayWolfe

No, it is as low as it is because they don't need the money. They have calculated that they will get as much as is needed at this rate. With the guarantees, for a higher rate tax payer, it is still not a bad rate. Not enough for me, but that's me. Others mileage may vary.

poppy10_2

RayWolfe wrote: »

No, it is as low as it is because they don't need the money.

That's pretty much it. With all the jitters about various commercial banks, there is much higher demand for the safe haven of NS&I government-backed savings, and therefore they can afford to slash the rate and still have people queueing up.

I really wish I had invested more in the last issue, looks like an amazing deal in hindsight

ManAtHome

Might be a safe haven, but must be the lowest rates they've ever offered, especially as even RPI is more than a bit dubious for most people. Getting on for being a marginal call for higher-rate payers, but may be a shelter for the next year (I wouldn't go for the full 3 or 5) - depends on your view of MPC independence I suppose...

RayWolfe

Don't forget that if you don't hold for the full term, you don't get the full rate. They are structured to give a smaller percentage in the early years.