National Savings - Index Linked
Discussion
Any thoughts on what to do with these?
I bought them many years and the RPI index linking + a percentage was attractive especially as it was and is tax free. I now have some certificates coming up for maturity which I can cash or re invest. The deal is less attractive now in that the rate is RPI + just 0.05% still free of tax though.
So negligible risk but a crap tax free return or cash in and gamble on shares????
I bought them many years and the RPI index linking + a percentage was attractive especially as it was and is tax free. I now have some certificates coming up for maturity which I can cash or re invest. The deal is less attractive now in that the rate is RPI + just 0.05% still free of tax though.
So negligible risk but a crap tax free return or cash in and gamble on shares????
disclaimer - I've got some.
I think it depends hugely on your other assets - how do they fit in with everything else? If you're already heavily into the stock market, do they bring some balance or alternatively if you don't own any shares then moving (some of) the money into the stock market may be a good way to add some risk/potential return.
I'd certainly renew them as 3 rather than 5 year bonds going forward - there's no return loss, and it gives you more frequent penalty free options to cash them in.
I think it depends hugely on your other assets - how do they fit in with everything else? If you're already heavily into the stock market, do they bring some balance or alternatively if you don't own any shares then moving (some of) the money into the stock market may be a good way to add some risk/potential return.
I'd certainly renew them as 3 rather than 5 year bonds going forward - there's no return loss, and it gives you more frequent penalty free options to cash them in.
xeny said:
disclaimer - I've got some.
I think it depends hugely on your other assets - how do they fit in with everything else? If you're already heavily into the stock market, do they bring some balance or alternatively if you don't own any shares then moving (some of) the money into the stock market may be a good way to add some risk/potential return.
I'd certainly renew them as 3 rather than 5 year bonds going forward - there's no return loss, and it gives you more frequent penalty free options to cash them in.
Yes good points, all of my certificates are 3 rather than 5 years. Most of my money is invested in shares and funds including bonds. Perhaps good to keep some in a tax free cash wrapper although tempting to turn them into additional income. I’m retired so generally looking for sustainable income with some growth.I think it depends hugely on your other assets - how do they fit in with everything else? If you're already heavily into the stock market, do they bring some balance or alternatively if you don't own any shares then moving (some of) the money into the stock market may be a good way to add some risk/potential return.
I'd certainly renew them as 3 rather than 5 year bonds going forward - there's no return loss, and it gives you more frequent penalty free options to cash them in.
I have some too and always renew them without hesitation.
They are tax free and government backed.
With the uncertainties facing the U.K. and the pound..... Brexit and Corbin ..... they’re excellent protection against inflation causing by a weakening pound.
They’re paying a better rate than a standard savings bond. They’ve been withdrawn to new investors so it’s a blessing that we’re allowed to renew them.
I think you can tell that I’m an enthusiast. ;-)
They are tax free and government backed.
With the uncertainties facing the U.K. and the pound..... Brexit and Corbin ..... they’re excellent protection against inflation causing by a weakening pound.
They’re paying a better rate than a standard savings bond. They’ve been withdrawn to new investors so it’s a blessing that we’re allowed to renew them.
I think you can tell that I’m an enthusiast. ;-)
williaa68 said:
Assuming you are a higher rate tax payer, have used your isa allowances etc the return (3.95% last month) is worth over 6% gross. There’s nothing else risk free that comes close. As part of a balanced portfolio I’d keep them. I have some and can’t imagine ever selling.
Yes, I’m sure that’s good advice and will hang onto them for now. The rationale for selling was that I’m now retired so seeking income ahead of growth. Having said that it’s never a bad thing to keep some investments in cash.Gassing Station | Finance | Top of Page | What's New | My Stuff