NS & I tax free savings - any good?

doctorscooby

I wondered if anyone could give me their views on these 3 and 5 year savings options with NS& I which are tax free. Are they worthwhile and likely to earn me more than say a S & S ISA?

whu

welcome to the site - S&S ISA is a long term investment and no one can predict how they will perform although the NSI is a fixed sum if you go for a bond- I would imagine that over a 5 year period the S&S ISA should produce more - have you used your cash ISA allowance?

doctorscooby

yes got 3600 in a fixed B+B ISA. Have the capital to stick other 3600 in S+S ISA but frankly a bit green and out of my depth in this area - been reading the site posts but still unsure what to do.

whu

i think it depends on how risk adverse you are - S&S ISA no gaurantee but NSI is(I am sure someone will be able to tell you how certain funds have done in the past but no gaurantee of the future of course!!)- are you a lower or higher rate tax payer?

doctorscooby

higher rate

david78

As a higher rate tax payer, the 3year and 5 year index linked certs may be worthwhile for cash savings, after you have fully used your £3600 cash ISA allowance.

Jonbvn

If you have sufficient money, why not have NSI index linked certs and a S&S ISA?

BTW, given the outlook for inflation the certs look pretty good ATM.

whu

I agree with the previous 2 posts