NS&I Index Linked Certificate Renewal
Comments
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From the renewal letter
"Even if the rates on offer for Index-Linked Saving Certificates fall between now and the maturity date, you'll still earn the rate quoted above if you renew your investment for a further term of the same length."
but if your renew for a different term
"We will invest your money in the issue which is on offer when your investment matures. Interest rates could go up or down between now and the maturity date."
I have always opted to renew for the same term rather than take the risk of the interest rate dropping - though now there is little scope for the rate to drop unless future issues offer RPI-x%.0 -
Most inflation linking is now done to CPI rather than RPI - main reason being that CPI is normally lower. Also given index linked NS&I products are no longer available - it's a no brainer to renew0
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I have a block of them bought whenever they were available over the years. Now sitting back to watch the magic of compounding work at 4%, tax and cgt free. Worth the years of low interest I think.
Every thing, well some comes to him who waits.
David.0 -
Index linked, tax-free and existing holders can get new ones when they mature. No bank would dream of doing this as it would lose them money.
So who actually funds this generosity? If only I had known about them 10 years ago. I would have the most enormous smug look on my face and be raising a glass to the British taxpayer.
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I always renew mine, but you can't really say returns are good, the returns are what they are, just a tad above inflation which means you're not losing money.I renewed mine for a further five years a year ago and the returns have been good
Most people don't seem to realise that money in the bank is actually going down in value.
For example all those people who cash in heir pensions, firstly stung for income tax, then they just stick it in the bank to lose more value - stupid or what!0 -
Out of interest, what determines whether they allow renewals or not?
The following statement appears on the NS&I listing of previous issues. I have shown the 3-year issue but there are many more.
3-year (Index-linking + guaranteed compound rate over 3 years)
(no Issue on general sale from 19 July 2010, only available to customers with a maturing Index-Linked Savings Certificate)
The link below is to a PDF of previous issues.
https://www.nsandi.com/files/published_files/asset/pdf/historical-interest-rates.pdf0 -
Thanks. I just wondered how likely it is I'll be able to renew again. I regret renewing for 3 years instead of 5.0
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These are very good value as the market price of index linked gilts is RPI MINUS around the 1.5% to 2.0% mark. So holders of these are getting significantly more than the market rate. I have always renewed for five years and this year renewed some again that were originally purchased back in 1992. So that will be 30 years come maturity !0
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These are very good value as the market price of index linked gilts is RPI MINUS around the 1.5% to 2.0% mark. So holders of these are getting significantly more than the market rate. I have always renewed for five years and this year renewed some again that were originally purchased back in 1992. So that will be 30 years come maturity !
What was the value in 2017 compared to the original purchase price in 1992? Must have at least doubled??0
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