people might like to know that national Savings and Invrestments have issued two new series of index linked savings certificates, series 16 and 43, for 3 and 5 years respectively.
people might like to know that national Savings and Invrestments have issued two new series of index linked savings certificates, series 16 and 43, for 3 and 5 years respectively.
maximum investment is £15,000 in each.
the last previous issue was in May 2007.
Also worth noting is that the previous addition to index linking was 1.35% - it's now a pitiful 0.35% or 0.25%.
Thanks for the tip. No e-mail from NS&I (used to get the 'rate change' e-mails). Info:
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Rates on 5-year (fixed & IL) are now pretty poor. Interesting that the two most recent issue of 5-year index-linked (41st and 42nd) were both on sale for 11 months each. This compares with an average of 3 months per issue for the previous 10 issues (of index-linked) and an average of 3.2 months for the fixed 5-years. Allan
Yes, I was also surprised at how long the gap was since the previous issue of IL certs. perhaps this suggests that the debt Managament Dept (or whatever it is called) have internally predicted that inflation is going to rise so it is better (from their POV) to issue fixed rate certs not IL certs. Furthermore, it also explains why the make them less attractive by offering an unuaually small extra on top of inflation, as Norman pointed out.
Not *that* poor. RPI is at 4.1% just now, and IL certs pay 0.35% if you put enough dosh in. And it's tax free. If RPI can be expected to remain at 4.1%, this means you get 4.45% net, equivalent to 5.56% or
7.42% gross to BR/HR taxpayers. Where else can you get that much on no-notice deposits?
There's also the small matter of deposits with NSI being 100% guaranteed without limit by the Treasury, unlike funds with any other bank except possibly NR. :-)
Why do you want to compare apples with oranges? IL Certs are not no notice, at least if you want to collect the bonus. But there are loads of instant access accounts for basic rate taxpayers that pay over 5.56% gross, as a quick search on moneysupermarket.com shows. Admittedly, though, it's hard to get 7.42% gross elsewhere. Higher rate taxpayers are being stuffed at the moment.
And rates at NR are dropping like a stone. 6.9% on a one year bond just before they were nationalised, 6.45% immediately afterwards, now only 6.15%, all in the course of a month or so.
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