msi Posted September 25, 2011 Share Posted September 25, 2011 Hello, Just received notice my N&SI Inflation bond was about to mature. Normally they'd rollover the bond at the same rate as before (was RPI+1% for 3 years). They have now graciously offered RPI+0.25% for the same term. Given that it's the only tax free way of beating inflation, I feel I'm gonna have to bend over and take this one. I'm not expecting this to be the last time either Quote Link to comment Share on other sites More sharing options...
ccc Posted September 25, 2011 Share Posted September 25, 2011 Seriously ?! Quote Link to comment Share on other sites More sharing options...
Ungeared Posted September 25, 2011 Share Posted September 25, 2011 Not 100% sure as i don't have my paperwork to hand, but they rolled over mine some months ago which was RPI + 0.5% which was lower than the previous interest rate, I thought this was standard practise, punish the proles Quote Link to comment Share on other sites More sharing options...
guitarman001 Posted September 25, 2011 Share Posted September 25, 2011 WHAT!!!!! I thought it was guaranteed that the prevous rate was upheld! SCUMBAGS! Mine matures in a year and a half. Check out the Halifax thread... Quote Link to comment Share on other sites More sharing options...
Pent Up Posted September 25, 2011 Share Posted September 25, 2011 (edited) I think when they re introduced these several months back that they truly believed that inflation was going to drop. Now they realise that QE is becoming a more serious option they know that inflation will almost certainly not be coming down anytime soon (I don't think they believe in the next leg down in the recession/depression) so now they have removed them again and are cutting the rates. They only let you have them if they believe they can mug you off. Edited September 25, 2011 by Pent Up Quote Link to comment Share on other sites More sharing options...
Frank Hovis Posted September 25, 2011 Share Posted September 25, 2011 My last rollover dropped to the currently available + percentage. Though I'm more interested in the RPI than the + to be honest. Quote Link to comment Share on other sites More sharing options...
Si1 Posted September 25, 2011 Share Posted September 25, 2011 printy printy Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted September 25, 2011 Share Posted September 25, 2011 Got notice this week of a 3 year Index Linked expiring end of this month. New terms Year 1 RPI + 0.18% Year 2 RPI + 0.23% Year 3 RPI + 0.35% Quote Link to comment Share on other sites More sharing options...
'Bart' Posted September 25, 2011 Share Posted September 25, 2011 that they truly believed that inflation was going to drop Not unless someone was spiking the cucumber sandwiches at the MPC meeting. They know precisely what they're doing as far as inflation goes. Quote Link to comment Share on other sites More sharing options...
Redcellar Posted September 25, 2011 Share Posted September 25, 2011 I wonder if National Lottery 'roll overs' will drop too. Since the value of the UK GBP is worth less every day might as well trash the lottery too. "Euro Hundreds" will be the new game? Quote Link to comment Share on other sites More sharing options...
Game_Over Posted September 25, 2011 Share Posted September 25, 2011 They are deliberately engineering inflation And they believe that they can avoid a wage price spiral due to mass immigration causing an oversupply of labour Catch 22 is that people have no spare money to spend and are refusing to get into debt again Also foreign workers are sending billions home so the economy is stagnating I have no idea what the end game will be but whatever happens is going to be very messy IMO Quote Link to comment Share on other sites More sharing options...
scottbeard Posted September 25, 2011 Share Posted September 25, 2011 WHAT!!!!! I thought it was guaranteed that the prevous rate was upheld! SCUMBAGS! Check your terms and conditions carefully. Mine say it rolls over at the current rate - not the rate you took it out at. Quote Link to comment Share on other sites More sharing options...
msi Posted September 25, 2011 Author Share Posted September 25, 2011 Check your terms and conditions carefully. Mine say it rolls over at the current rate - not the rate you took it out at. I thought mine did. Need to get the small print out to check. Quote Link to comment Share on other sites More sharing options...
scottbeard Posted September 26, 2011 Share Posted September 26, 2011 I think when they re introduced these several months back that they truly believed that inflation was going to drop. Now they realise that QE is becoming a more serious option they know that inflation will almost certainly not be coming down anytime soon (I don't think they believe in the next leg down in the recession/depression) so now they have removed them again and are cutting the rates. They only let you have them if they believe they can mug you off. Or without the conspiracy theories, they needed some money so offered a popular product to the market. When they got as much money as they could without stepping on the toes of commercial banks, they pulled them. The X% in their RPI + X% formula seems at the moment to generally be tracking the yield on government index-linked gilts, which was close to 1% last year, around 0.5% earlier this year and now around 0.25% (it's in the FT if you want to check). This makes sense, as if they gave a higher X% it would be cheaper for them just to issue gilts instead. And even if inflation is falling, this isn't "mugging you off" - in times of lower inflation you'd expect ALL investments (shares, gold, property, cash etc) to return less, not just these bonds. All this product does or claims to do is give you RPI plus a bit. Quote Link to comment Share on other sites More sharing options...
davidcameron Posted September 26, 2011 Share Posted September 26, 2011 The X% in their RPI + X% formula seems at the moment to generally be tracking the yield on government index-linked gilts, which was close to 1% last year, around 0.5% earlier this year and now around 0.25% (it's in the FT if you want to check). This makes sense, as if they gave a higher X% it would be cheaper for them just to issue gilts instead. Short IL gilt yields are currently negative. Quote Link to comment Share on other sites More sharing options...
Normal Posted September 26, 2011 Share Posted September 26, 2011 (edited) Hello, Just received notice my N&SI Inflation bond was about to mature. Normally they'd rollover the bond at the same rate as before (was RPI+1% for 3 years). They have now graciously offered RPI+0.25% for the same term. Given that it's the only tax free way of beating inflation, I feel I'm gonna have to bend over and take this one. I'm not expecting this to be the last time either Given that the last issue has been withdrawn due to over subscription, there isn't really a "current" issue, so being able to rollover at all is a bonus! IIRC they have always rolled onto the new "current" rate though. Edited September 26, 2011 by Hara Quote Link to comment Share on other sites More sharing options...
14k Posted January 28, 2012 Share Posted January 28, 2012 I don't live in the UK anymore, how do I know they won't rollover mine without asking me first. (Don't have an address in the UK I can use anymore) When they do mature how is the interest earned paid to me? I hate these non-internet investments. I hand them 15k pounds and they just give me a piece of paper! Quote Link to comment Share on other sites More sharing options...
Frank Hovis Posted March 10, 2012 Share Posted March 10, 2012 I don't live in the UK anymore, how do I know they won't rollover mine without asking me first. (Don't have an address in the UK I can use anymore) When they do mature how is the interest earned paid to me? I hate these non-internet investments. I hand them 15k pounds and they just give me a piece of paper! They send you a letter, if you don;t reply within a coupel of weeks they get either automatcially rolled-over into index-linked or, if you're out of roll-overs, into some rubbish low interest rate paying taxable bond. You get the capital and interest together if you pull them out either at roll-over or by giving notice, no penalty after the first year. Anyway my reason for bumping this is I remember hearing when they were withdrawn again last year that index-linked would be back on sale in April. Has anybody heard anything on this? I'm particularly interested in whether there will be one issue or two as I'll need to set the money aside. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted March 11, 2012 Share Posted March 11, 2012 I'm wary of index linked bonds that are issued by the creators of the linked index. Quote Link to comment Share on other sites More sharing options...
MrB Posted March 22, 2012 Share Posted March 22, 2012 Wondering RE the liklehood of a new issue this year. Not sure whether to tie up £25k with cahoot on a 1 year bond, or hold our for a new issue of these. The tax free bit trumps all. Quote Link to comment Share on other sites More sharing options...
Frank Hovis Posted March 22, 2012 Share Posted March 22, 2012 I'm wary of index linked bonds that are issued by the creators of the linked index. Nothing in this world is pefect, but a fiddled index is better than a taxed return below the fiddled index. Wondering RE the liklehood of a new issue this year. Not sure whether to tie up £25k with cahoot on a 1 year bond, or hold our for a new issue of these. The tax free bit trumps all. I have £30k set aside and have been assuming they will be out in April (though one issue - £15k - or two?) but surprised not to have heard anything by 22 March. Will just have to keep checking here. Quote Link to comment Share on other sites More sharing options...
Frank Hovis Posted March 24, 2012 Share Posted March 24, 2012 If you have previous bonds do you not get an email - I do - telling of new issues. I don't register my e-mail address Doccy, I rely on paper as it's easier to identify what's important. For up to the minute breaking news I come here. Quote Link to comment Share on other sites More sharing options...
Quicken Posted March 28, 2012 Share Posted March 28, 2012 Nothing in this world is pefect, but a fiddled index is better than a taxed return below the fiddled index. I have £30k set aside and have been assuming they will be out in April (though one issue - £15k - or two?) but surprised not to have heard anything by 22 March. Will just have to keep checking here. Yeah, it was announced on 23rd March last year (around the budget), but I don't think they came out until end of April or early May. I'm hoping for another batch. Maybe this year they are waiting for a proportion of people to load up on the new year's ISA's first, so as not to starve the poor banksters of funding. Q Quote Link to comment Share on other sites More sharing options...
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