It hasn't been mentioned here yet, but National Savings and Investments announced changes in terms and conditions to be introduced from 20th September. This affects a number of products, but the one that most worries me is Index Linked Savings Certificates -- see for details.
In the past it has been possible to cash them in after one year with
no loss of interest or indexation. In the future, that is for
certificates purchased after 20th September (if they are on sale) or
for certificates that roll over after that date there will be a
penalty of 90 days interest and loss of index-linking for the _whole_
certificate for that year.
This will hit partial redemptions badly -- e.g. redeeming 100 pounds
of a 15,000 pound certificate. A partial work-around would be not to
purchase a 15,000 pound certificate in future, but instead to purchase
15 individual certificates of 1,000 pounds, or even 150 certificates
of 100 pounds (the minimum investment per certificate). This would
not mitigate against the 90 day penalty, but at least it will avoid
the loss of index-linking for the amount that remains invested.
We don't know how NS&I will react to a request to purchase 150
certificates of 100 pounds -- there are no certificates on sale at the
moment. I assume they have considered this and will not have to issue
150 individual paper certificates.
- posted 7 years ago