NS&I Index Linked Savings Certificates Maturing
Discussion
I have around £25K worth of these maturing in a month.
They make up the majority of what I'd consider my emergency fund as between those and £5-10K in the bank and a £12K credit card limit they make up the bulk of the "cash" I could get at without needing to sell down investments.
If I roll them over they're locked in so they are no longer accessible.
I already use my ISA limit each year.
I could look at gilts but right now I'm thinking the most viable option is Premium Bonds if I'm taking the view this is money where some return would be nice but mostly it's sitting there "just in case".
Am I overlooking anything please?
They make up the majority of what I'd consider my emergency fund as between those and £5-10K in the bank and a £12K credit card limit they make up the bulk of the "cash" I could get at without needing to sell down investments.
If I roll them over they're locked in so they are no longer accessible.
I already use my ISA limit each year.
I could look at gilts but right now I'm thinking the most viable option is Premium Bonds if I'm taking the view this is money where some return would be nice but mostly it's sitting there "just in case".
Am I overlooking anything please?
If they make up your emergency fund and that is the fund quantum you want, certainly locking them away for another 3 years appears not the right answer.
Equally PB’s with then halve the max will on average not even earn you the same return on a tax adjusted as if basis as a perhaps limited access savings account.
For balance those certificates over the last few years have done well given inflationary numbers.
It’s what you think they will continue to do but then you’ve still got the no access issue.
We’ve just had similar letters but they weren’t my emergency cash and have just rolled them over.
I think in your situation I’d be more minded to have my emergency cash in perhaps a limited ( times ) savings account with some PB’s for a small hedge.
Equally PB’s with then halve the max will on average not even earn you the same return on a tax adjusted as if basis as a perhaps limited access savings account.
For balance those certificates over the last few years have done well given inflationary numbers.
It’s what you think they will continue to do but then you’ve still got the no access issue.
We’ve just had similar letters but they weren’t my emergency cash and have just rolled them over.
I think in your situation I’d be more minded to have my emergency cash in perhaps a limited ( times ) savings account with some PB’s for a small hedge.
butchstewie said:
I have around £25K worth of these maturing in a month.
They make up the majority of what I'd consider my emergency fund as between those and £5-10K in the bank and a £12K credit card limit they make up the bulk of the "cash" I could get at without needing to sell down investments.
If I roll them over they're locked in so they are no longer accessible.
I already use my ISA limit each year.
I could look at gilts but right now I'm thinking the most viable option is Premium Bonds if I'm taking the view this is money where some return would be nice but mostly it's sitting there "just in case".
Am I overlooking anything please?
How many years have you had them and how have they performed? They're not based on real inflation right?They make up the majority of what I'd consider my emergency fund as between those and £5-10K in the bank and a £12K credit card limit they make up the bulk of the "cash" I could get at without needing to sell down investments.
If I roll them over they're locked in so they are no longer accessible.
I already use my ISA limit each year.
I could look at gilts but right now I'm thinking the most viable option is Premium Bonds if I'm taking the view this is money where some return would be nice but mostly it's sitting there "just in case".
Am I overlooking anything please?
One of the renewal options is 3 years. It’ll come around very quickly. Given they are risk free and your only other real options are ISAs and premium bonds I’d give some thought to renewing. There is still a very good chance we’re going to get some juicy inflation and so the risk free return could be quite good.
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