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Ns&i Savings Certificates Pulled


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Dear Mr Cameron

As you’ve registered to receive updates from NS&I, I’m writing to let you know that all current Issues of NS&I Savings Certificates were withdrawn from general sale at close of business on 6 September 2011.

The latest Issues of Savings Certificates had been on sale for almost four months (since 12 May 2011) and have been very popular. When we launched the Issues we expected the amount invested to be substantial, and our expectations have now been met.

We’re sorry if you haven’t been able to invest on this occasion, but we will contact you again as soon as the next Issues go on general sale.

You can see the current rates for all NS&I accounts and investments on our interest rates page.

Yours sincerely

Garry Bond

Head of Customer Management

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Dear Mr Cameron

As you’ve registered to receive updates from NS&I, I’m writing to let you know that all current Issues of NS&I Savings Certificates were withdrawn from general sale at close of business on 6 September 2011.

The latest Issues of Savings Certificates had been on sale for almost four months (since 12 May 2011) and have been very popular. When we launched the Issues we expected the amount invested to be substantial, and our expectations have now been met.

We’re sorry if you haven’t been able to invest on this occasion, but we will contact you again as soon as the next Issues go on general sale.

You can see the current rates for all NS&I accounts and investments on our interest rates page.

Yours sincerely

Garry Bond

Head of Customer Management

I had some from the last round but decided not to put any more in as I'm concerned about the government making good on their commitments without a soft default.

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There are always index-linked gilts, preferably within a stocks & shares ISA.

The downside is that, unlike the NS&I certs, these are not deflation proof.

Someone at the post office has got a little spooked, More printy printy or no printy printy, inflation / deflation we are on the knife edge once again.

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..and that rather then paying a real return of 0.5%, short dated IL gilt yields are currently negative.

The IL prices already discount a lot of inflation, NSI didn't. It's pretty close to a freebie, I can't wait for the next issue.

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..and that rather then paying a real return of 0.5%, short dated IL gilt yields are currently negative.

Indeed.

The remaining dividends from the 2013 issue will probably be more than swallowed by further capital value decline until maturity.

iichart.png

A good strategy seems to be to sell about two years before maturity. This worked well for the 2011 and 2013 issues.

The 2016 issue might prove to be worthwhile if inflation is allowed to rip for the next two or three years, but not if a deflationary bust is chosen.

Tricky times.

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I called up NS&I about 3 weeks ago to ask when the next bond issue might go on sale (currently maxed-out on my allowance).

I got the impression that demand hadn't been as high as they had expected for the current bond issue, but there was no way they were going to give out info about when the next issue might go on sale. Hope it's soon, but the press releases give me no hope whatsoever.

There was very little downside to the previous deal.

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Ad in the times the other day for something similar issued by the post office (bank of ireland)

Save for a 3 year fixed term and receive the annual RPI inflation rate plus 0.50% gross1 / 0.49% AER2 fixed each year, paid at maturity.

Save for a 5 year & 1 day fixed term and receive the annual RPI inflation rate plus 1.50% gross1 / 1.46% AER2 fixed each year, paid at maturity.

If the annual RPI inflation rate is 0% or below in any year, you will still benefit from the fixed return for that year (paid at maturity).

http://www2.postoffice.co.uk/finance/savings-investments/inflation-linked-bond&intcampaignid=PI0693

Some Building socs have similar ones if the bank of ireland doesnt tickle you fancy.

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Yes, they were too good, they had to go.

I'm sure all HPCers maxed out on these on day one! ;)

On the plus side, if they come back it will be a "new issue" so you'll be able to max out on them as well.

Frankly it looks like the govt is expecting high inflation for years to come so they've reduced their exposure to "linked" products. The Debt Management Office has stopped believing the BoE's assertion that inflation will be coming down soon. ;)

The bankers will be pleased. They hated them.

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Yes, they were too good, they had to go.

I'm sure all HPCers maxed out on these on day one! ;)

On the plus side, if they come back it will be a "new issue" so you'll be able to max out on them as well.

Frankly it looks like the govt is expecting high inflation for years to come so they've reduced their exposure to "linked" products. The Debt Management Office has stopped believing the BoE's assertion that inflation will be coming down soon. ;)

The bankers will be pleased. They hated them.

Banks need all the deposits they can get......

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Ad in the times the other day for something similar issued by the post office (bank of ireland)

Save for a 3 year fixed term and receive the annual RPI inflation rate plus 0.50% gross1 / 0.49% AER2 fixed each year, paid at maturity.

Save for a 5 year & 1 day fixed term and receive the annual RPI inflation rate plus 1.50% gross1 / 1.46% AER2 fixed each year, paid at maturity.

If the annual RPI inflation rate is 0% or below in any year, you will still benefit from the fixed return for that year (paid at maturity).

http://www2.postoffice.co.uk/finance/savings-investments/inflation-linked-bond&intcampaignid=PI0693

Some Building socs have similar ones if the bank of ireland doesnt tickle you fancy.

But they're not as attractive as the NS&I certificates because:

1) The interest is taxed.

2) There tend to be stiffer penalties for withdrawing early.

3) They're not (quite) as safe from bank failure as NS&I certs.

I've got 30K in earlier issues, and just yesterday withdraw some savings to buy this issue. :angry: Why couldn't they have given a few days notice?

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