NSANDI cut interest rates!

bigfreddiel

As we all may have seen NSANDI have cut 1% off their Indexed Linked Issues 16 and 43.

I took out these last year so does my interest rate remain at that when I invested ie.e 1% more than now as they do say its Guaranteed?

Here is there current offering:


Index-linked Savings Certificates
3-year 16th Issue
Guaranteed compound rate over 3 years Index-linking + 0.25% AER Tax-free
Index-linked Savings Certificates
5-year 43rd Issue
Guaranteed compound rate over 5 years Index-linking + 0.35% AER Tax-freeCheers

fj

amcluesent

From the FAQ:

Do new Issues affect any I already have?

No – any Index-linked Savings Certificates you already have will still earn index-linking and extra interest at the rates guaranteed when you invested.

Biggles

bigfreddiel wrote: »

As we all may have seen NSANDI have cut 1% off their Indexed Linked Issues 16 and 43.

I took out these last year so does my interest rate remain at that when I invested ie.e 1% more than now as they do say its Guaranteed?

Well, actually, no you didn't. ;-)

You took out Issues 15 and 42, as did I. A much better deal and, as Amcluesent says, not affected by the rates paid for 16 & 43.

bigfreddiel

Thanks for that - I should have checked the issue number, basically I just tucked these away for the 3 or 5 years and forgot about them till I saw the new interest rate!

fj

IGK

Not surprising given what a steal the Index-linked RPI + 1.35% used to be.
With RPI at 3.8% the 1.35% is equivalent to 6.44% for basic rate taxpayer, whereas 0.35% is only 5.19% equivalent. Not great considering other options, but with inflation looking dangerous maybe a prudent place for part of one's portfolio.
And it's safe which is worth something these days.

Jonbvn

Agreed!

The previous issue of the certs were an excellent deal. The current issue is marginal IMHO.

Perhaps this rate drop is tantamount to the treasury admitting that inflation is about to rise significantly (as if we didn't already know!).