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geezer466

Ns&i Index Linked Certificates 5 Years Maturity

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Who recalls these? Some of us dived in 5 years ago think the maximum investment was £10,000. Anway they are coming to maturity..

Got a letter came through this morning asking what I wanted to do with mine as it matures on 13th May. Mentioned I had a maturity value of £114.61.

Gave me quite a shock as I thought I had invested £10,000. Anyway after a quick call when the chap didn't tell me very much I was able to deduce that I have two certificates. One for £100 the other for £9,900. Think I opened the account and sent £100 to start to make sure it all went through ok.

The maturity notice for the £9,900 will follow in a few days..

Anyway from the interest on the £100 which was £14.61 over the 5 years the un-compounded rate on £9900 (99*14.31) should be £1446.39 + the original £14.61 giving a return of £1461 pounds for the £10k investment.

Anyway my question. I am usually savings illiterate (maybe you can tell from my workings above)? Is it worth leaving this sum in there?

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I've got some of these. They roll over to RPI + 0.05% tax-free. RPI at the moment is 1.6% (see https://www.ons.gov.uk/economy/inflationandpriceindices),so it's beating most ISAs. The early withdrawal penalty isn't too onerous - loss of a year's interest I think.

I think it's still a good deal if you don't have the stomach for the stock market roller coaster. I don't, so plan to roll it over. I think interest rate rises of sufficient size to raise savings rates to beat this are still some way off.

Note that you can't buy invest in these now as a new customer, you can only roll over existing ones.

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