National savings index linked

[tali1]

National savings index linked - my 5 yr certificate will mature.I'm thinking of reinvesting for 3 years index-linking to CPI + 0.01% tax-free/AER.
Just wondering is it worth reinvesting ? Are they the best of the low interest rate options ?
I have stock investments- and don't want to add more there.

[Simpo Two]

tali1 said:

National savings index linked - my 5 yr certificate will mature.I'm thinking of reinvesting for 3 years index-linking to CPI + 0.01% tax-free/AER.
Just wondering is it worth reinvesting ? Are they the best of the low interest rate options ?
I have stock investments- and don't want to add more there.

0.01% tax free. Well, you can receive £1,000 a year in interest tax free anyway so you'd need a heck of a lot invested to benefit from that.

Without checking what the CPI currently is, I am fairly certain, given a certain pandemic this year, that the CPI is only going to go one way, and that is down and maybe to beyond down. Basically, think of it like cash. If you're happy with that, carry on.

Index linked is great when the indices are high. When they are 3/4 of 5/8 of fk all, you may as well strap yourself to the Titanic.

This is only my opinion of course.

[xeny]

I've got some, and as they mature am moving at least some of them to lower risk bond heavy investments (think like LS20).

I can live with RPI plus a minute amount extra, CPI is just too pathetic for me, except for a relatively small "the roof has fallen in" quantity, especially as I agree with Simpo Two that inflation at least for the next year or two is heading down.

[tali1]

Their Income Bond is 1.16%.My only prob is i can't get contact with them to find out if i can transfer my index certificate to income bond.There is nothing on website and paper forms do not give option

[bitchstewie]

I have some and every time I ask the consensus seems to be absolutely do not sell them unless you need the money as cash.

[colin79666]

They don't sell them anymore so keep that in mind. If you cash out you can't change your mind and put money back in when inflation picks up. With all the extra money being manufactured by the BoE it will probably eventually cause inflation to pick back up, even if we see a period of low/deflation first. Agree however that the switch to CPI makes then less attractive.

It depends I suppose what your risk appetite is. Compared to a basic bank saving account they still look reasonable but if you are prepared to take a bit more risk and invest then you have more potential for making a better return.

[Simpo Two]

tali1 said:

Their Income Bond is 1.16%.My only prob is i can't get contact with them to find out if i can transfer my index certificate to income bond.There is nothing on website and paper forms do not give option

1.16%. What are the likes of Marcus and Tescobank offering these days?

Also, sometimes it's helpful to translate percentages into actual money. It stops you getting hung up on fractions of a percent when you realise the difference is only £4 a year...

[Thin White Duke]

Simpo Two said:

1.16%. What are the likes of Marcus and Tescobank offering these days?

Also, sometimes it's helpful to translate percentages into actual money. It stops you getting hung up on fractions of a percent when you realise the difference is only £4 a year...

Marcus currently on 1.05% interest in the easy access account.

[colin79666]

Thin White Duke said:

Marcus currently on 1.05% interest in the easy access account.

To existing customers. They stopped taking applications recently as they had too much money coming in and were in danger of busting the limit where they would have to keep the retail and investing business separate.

[Simpo Two]

'Too much money coming in'. Well that's a problem I'd be happy to take off their shoulders!

So they're doing the banking equivalent of staying under the VAT threshold.... look Marcus, really, I can help here. Send me a million to ease the strain. I'm happy to pay the tax. You have less money, I have more, so does HMRC. Everybody wins! Actually let's make it £2M