Ns& I Back

[VeryMeanReversion]

On the HPC blog and http://www.nsandi.com/savings-index-linked-savings-certificates

Rather than RPI+1% tax-free, its RPI+0.5% tax-free. If you believe in inflation (I do), it looks ideal.

They seem to have removed the ability to hold one in an under-7 child's name from a quick look.

[exiges]

They seem to have removed the ability to hold one in an under-7 child's name from a quick look.

They've also removed the 3yr certificate.

[_w_]

On the HPC blog and http://www.nsandi.co...gs-certificates

Rather than RPI+1% tax-free, its RPI+0.5% tax-free. If you believe in inflation (I do), it looks ideal.

They seem to have removed the ability to hold one in an under-7 child's name from a quick look.

Thank you for the heads up, much appreciated.

[Bloo Loo]

How do bankers earn RPI + 0.5% plus profit?

[bomberbrown]

Could they have introduced these again in an attempt to try and reduce inflation? My thinking is that these will 'soak' up quite a lot of cash thats out there.

Or is that a naive or stupid assessmnent?

[winkie]

RPI guaranteed, tax free, plus guaranteed to be safe has got to be better than what you get in other savings accounts....only need to keep it for a year.

I am sure the banks and building societies will lose some of their deposits because of this....will they now start giving their loyal savers a better deal because of the new competition?....I wonder.

[_w_]

Could they have introduced these again in an attempt to try and reduce inflation? My thinking is that these will 'soak' up quite a lot of cash thats out there.

Or is that a naive or stupid assessmnent?

You are giving this money to the government who will spend it as part of its <cough>bullsh*t<cough> austerity program. The money always ends up back in banks as <cough>gambling money<cough> deposits.

[RegularInv]

Could anyone help please with total interest earned on certificate bought today for amount say £10k and if RPI goes down from say 5.0% to 4.5% in first year?

[bobthe~]

Could anyone help please with total interest earned on certificate bought today for amount say £10k and if RPI goes down from say 5.0% to 4.5% in first year?

you get 4.5% + 0.5% (making 5%) tax free.

If you need someone to work out 5% of 10k, then presumably the "Inv" part of your name doesn't stand for "Investor".

Edit to add: That is per year, so if inflation is constant, then it is 5% per year compounded.

It also used to be tax free if held for a year or more. Is that still true?

Edited May 12, 2011 by bobthe~

[Normal]

Could anyone help please with total interest earned on certificate bought today for amount say £10k and if RPI goes down from say 5.0% to 4.5% in first year?

1st anniversary value=

Original value * (Change in RPI value + year 1 bonus) =

10000 * (0.045 + 0.0005) = £455

Actually, they take the RPI value from 2 months ago, but let's not confuse matters too much.

[_w_]

you get 4.5% + 0.5% (making 5%) tax free.

If you need someone to work out 5% of 10k, then presumably the "Inv" part of your name doesn't stand for "Investor".

Could it be invertebrate?

[Normal]

you get 4.5% + 0.5% (making 5%) tax free.

If you need someone to work out 5% of 10k, then presumably the "Inv" part of your name doesn't stand for "Investor".

Edit to add: That is per year, so if inflation is constant, then it is 5% per year compounded.

It also used to be tax free if held for a year or more. Is that still true?

No, you don't get 0.5% every year...

Year    Bonus rate1       0.05%2       0.07%3       0.10%4       0.30%5       0.71%

[bobthe~]

1st anniversary value=

Original value * (Change in RPI value + year 1 bonus) =

10000 * (0.045 + 0.0005) = £455

Actually, they take the RPI value from 2 months ago, but let's not confuse matters too much.

500. It is +0.5%, not 0.05%

Edit to add - apologies, I hadn't read the prospectus. Presumably it works out to 0.5% if held the full term?

Edited May 12, 2011 by bobthe~

[Lagarde's Drift]

1st anniversary value=

Original value * (Change in RPI value + year 1 bonus) =

10000 * (0.045 + 0.0005) = £455

Actually, they take the RPI value from 2 months ago, but let's not confuse matters too much.

And, they actually take the RPI value from a certain month, which is correlated to the time in which the certificates are purchased / redeemed. So monthly fluctuations also make a difference. It's not just a matter of looking at the headline RPI %change.

It is still taking the piss when inflation in reality is much higher.

[RegularInv]

you get 4.5% + 0.5% (making 5%) tax free.

If you need someone to work out 5% of 10k, then presumably the "Inv" part of your name doesn't stand for "Investor".

Edit to add: That is per year, so if inflation is constant, then it is 5% per year compounded.

It also used to be tax free if held for a year or more. Is that still true?

I probably can work out 5% of 10k, I have a calculator .

Thanks to everyone answering my question, appreciate it.

[spyguy]

Look's like UKGOV has decided it needs the deposits more than banks.

Poof! And in an instance, 50%+ of bank deposits disappear into NSI bonds.

[bendy]

Look's like UKGOV has decided it needs the deposits more than banks.

Poof! And in an instance, 50%+ of bank deposits disappear into NSI bonds.

Mine just did

Precursor to more QE? Might as well get the rate rather than the paltry amount that the banks will offer.

[Lazybones]

Anybody holding NS&I in a SIPP? Is it better/worse than the market tracking funds?

[spyguy]

By my rough + ready reckoner that means mortgage debt is going to cost ~ 7% - 5% risk free return + 2% operating costs + profit.

[Pent Up]

Is your money tied in with for a fixed term? How exactly I'd the rate you get calculated as inflation varies throughout the year?

[guitarman001]

I put a wad of my savings in last June for a 3-year certificate (not sure if when it's rolled over I get the same 1% on top deal, or if it'd be switched to this 0.5% on top)... £11.5k currently gives me back approx £550 on top so far.

Not sure if I'm going to pour any more money in.

[Reck B]

I'm uneasy at investing in anything to do with the ultimate market manipulators who also have all the information.

There will be reasons for the re-issuing of these and I doubt allowing you to protect yourself against inflation is the main one.

[Pent Up]

I'm uneasy at investing in anything to do with the ultimate market manipulators who also have all the information.

There will be reasons for the re-issuing of these and I doubt allowing you to protect yourself against inflation is the main one.

My first thought was inflation to plummet! My second thought was interest rates to rise!?

[Timm]

You are giving this money to the government who will spend it as part of its <cough>bullsh*t<cough> austerity program.

(...)

(...)

Government funding needs overrides bank lobbying? Surely not, things must be desperate.

If one takes the view that Government spending is not funded by taxation, one might think that perhaps this has more to do with inflation. But inflation does not seem to be at the sort of levels they would be worrying about ATM...

(...)

Precursor to more QE?

(...)

Ahh. You might have something there.

[Democorruptcy]

My first thought was inflation to plummet! My second thought was interest rates to rise!?

My first thought was a new house price index included in RPI instead of food, fuel and energy costs.