Jump to content
House Price Crash Forum
campervanman

Index Linked Svings Certificates Withdrawn

Recommended Posts

Is it only me who feels a deep unease about this?

This was the one more or less risk-free way to store value available to savers.

Yes, I to am uneasy about this, especially as I was about to put a load in. "Government removes only safe way of protecting savings from inflation." :angry:

Share this post


Link to post
Share on other sites

Index linked savings certificates were a good product that protected investors money against inflation, risk free.

Does that mean they have been withdrawn because they were getting too expensive for the government? :(

Share this post


Link to post
Share on other sites

Uh oh. Can anyone else confirm whether, when they close an issue, they immeadiately open a new issue i.e. is this just normal...?

Alternative suggestions anyone? Has BTL potentially become a whole lot more attractive for people again?

Share this post


Link to post
Share on other sites

Is it only me who feels a deep unease about this?

This was the one more or less risk-free way to store value available to savers.

Reading this article in the

Telegraph

They seem unaware that China is slowing and the US is tipping into a second leg of the Long Slump. Last week's collapse in America's ECRI leading indicator to -9.8 marks the end of the V-shaped rebound. If this means what it normally means - recession within three months - Europe must take immediate action to prevent being drawn into a deflationary vortex. Spiralling public debt precludes further Keynesian spending, so this must come from central bank stimulus. Tight fiscal policy offset by ultra-loose money is the only option for Europe, the US, and Japan.

It looks like we are in for more QE.

I now officially have no clue how to protect my savings do I buy now just before house prices crash or hope that house prices crash quicker than the value of my savings?

Edited by siskin

Share this post


Link to post
Share on other sites

Is it only me who feels a deep unease about this?

This was the one more or less risk-free way to store value available to savers.

Not just you, I have piled the most I could into these for the last three years...................clearly so have many and they must be predicting the returns will be good.

Very worrying..................

Share this post


Link to post
Share on other sites

I'd just been looking at these, having received a letter last week to tell me that the interest rate on an ISA had been reduced to 0.25% per annum (tax free, though!). Oh well...

Share this post


Link to post
Share on other sites

Afaik index linked NSC's have been going for around 30 years, initially available to OAP's and later to everyone. Seems a bit odd that a government committed to helping savers should do this at this time.

Share this post


Link to post
Share on other sites

Thank christ I filled up just last Wednesday. Money out of my bank on Friday.

Surely this kind of abrupt withdrawal after only two months of an issue is unprecedented? This is highly disturbing. I didn't think we would see this level of cynicism towards savers so soon into the new government.

This really only leaves one other place for UK savings to go that has no counterparty risk: a certain highly conductive yellow metal. On the other hand, perhaps we'll just get a new issue at RPI + 0% in a few weeks.

Edited by 50sQuiff

Share this post


Link to post
Share on other sites

I hear the next issue of NSC's are going to be linked to HPI not RPI :o

was actually thinking they would issue new ones linked to CPI, and then let inflation rip on the part of the basket that is in RPI, but not CPI......

Share this post


Link to post
Share on other sites

So if you have a NS&I index linked certificate, after the 3 or 5 years is up can you renew or not?

Share this post


Link to post
Share on other sites

Yes, I to am uneasy about this, especially as I was about to put a load in. "Government removes only safe way of protecting savings from inflation." :angry:

Yeah I was about to put in our 5k savings from the past 5 months which is now in hard cash. (I know it's chicken feed to some of you!)

All I can come up with at the moment is the sensible idea of having a wood burner put in and the less sensible ideas of paying my rent and CT for the financial year and putting some into Yen.

Maybe we should think in terms of return 'of' investment from now on?

Share this post


Link to post
Share on other sites

This really is shocking.

Must mean we're in for a SERIOUS bout of inflation if they've been removed altogether.

Even in the early 80's, they kept them going but just paid RPI + 0%, i.e. no bonus.

Re. government financing... surely though, with a budget deficit of 10%+, we need to find buyers for £150bn+ of gilts. Last year this was the BoE but this year...? Cameron keeps banging on about a savings culture and NS&I deposits are used to offset the national debt... so.. why not issue boat loads?

Edited by AvidFan

Share this post


Link to post
Share on other sites

Yeah I was about to put in our 5k savings from the past 5 months which is now in hard cash. (I know it's chicken feed to some of you!)

All I can come up with at the moment is the sensible idea of having a wood burner put in and the less sensible ideas of paying my rent and CT for the financial year and putting some into Yen.

Maybe we should think in terms of return 'of' investment from now on?

You rent? So why would you put a wood burner in your landlord's property?

Share this post


Link to post
Share on other sites

You rent? So why would you put a wood burner in your landlord's property?

I have a secure tenancy, I'm a council dweller. Of course the law could change but I'll probably be able keep one step ahead. (RTB etc.)

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.