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Weekend press articles (2) on NS&I

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yorkshirelad1
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Weekend press articles (2) on NS&I

#462478

Postby yorkshirelad1 » December 2nd, 2021, 12:18 am

A couple of articles from the weekend press about N&SI (savings certificates and premium bonds)

Hunter Davies Sunday Times 28 Nov 2021
After 60 years, I have finally given up on National Savings
https://www.thetimes.co.uk/article/after-60-years-i-have-finally-given-up-on-national-savings-pxwzb8h32

NS&I cancels prizes over 'forgotten' Premium Bonds; Daily Telepraph 27 Nov 2021
https://www.telegraph.co.uk/personal-banking/savings/nsi-rescinds-premium-bonds-prizes-due-decades-old-technicality/


(Personally, in relation to Hunter Davies and savings certs: if he's binned index-linked savings certifcates, that's up to him. I'm sitting on mine and keeping quiet (latest RPI 6%))

Dod101
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Re: Weekend press articles (2) on NS&I

#462483

Postby Dod101 » December 2nd, 2021, 1:03 am

yorkshirelad1 wrote:A couple of articles from the weekend press about N&SI (savings certificates and premium bonds)

Hunter Davies Sunday Times 28 Nov 2021
After 60 years, I have finally given up on National Savings
https://www.thetimes.co.uk/article/after-60-years-i-have-finally-given-up-on-national-savings-pxwzb8h32

NS&I cancels prizes over 'forgotten' Premium Bonds; Daily Telepraph 27 Nov 2021
https://www.telegraph.co.uk/personal-banking/savings/nsi-rescinds-premium-bonds-prizes-due-decades-old-technicality/


(Personally, in relation to Hunter Davies and savings certs: if he's binned index-linked savings certifcates, that's up to him. I'm sitting on mine and keeping quiet (latest RPI 6%))


I read the article by Hunter Davies as well but saw no comment about index linked savings certificates. I hold a chunk of them as well and I feel that anyone holding them should really keep them as a proxy for cash. As a matter of fact, is it not the case that as they are renewed they are indexed to the lower CPI? Still worth holding of course.

Dod

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Re: Weekend press articles (2) on NS&I

#462506

Postby mutantpoodle » December 2nd, 2021, 8:16 am

qq is it not the case that as they are renewed they are indexed to the lower CPI? Still worth holding of course. uqq

not quite...

if you do NOTHING then they automatically renew into same length bond but yes at new fake CPI rate not the slightly nearer reallity rate of RPI

you dont have to 'renew' as such

Dod101
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Re: Weekend press articles (2) on NS&I

#462535

Postby Dod101 » December 2nd, 2021, 9:41 am

mutantpoodle wrote:qq is it not the case that as they are renewed they are indexed to the lower CPI? Still worth holding of course. uqq

not quite...

if you do NOTHING then they automatically renew into same length bond but yes at new fake CPI rate not the slightly nearer reallity rate of RPI

you dont have to 'renew' as such


Well I know that, having held them for over 20 years, but I am not sure what point you are making. Even if I do SOMETHING, I cannot 'renew' them into RPI indexing.

Dod

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Re: Weekend press articles (2) on NS&I

#462539

Postby yorkshirelad1 » December 2nd, 2021, 9:46 am

re "renewing": I believe the position on maturity, if chosen (or default), a savings certificate will *renew* (as in, from the letter, "we will renew your Certificate automatically") on the same terms (length/years and fixed/IL). Re indexation, it's that NS&I ILSCs have changed and use CPI for indexation not RPI (from May 2019)

HD & savings certs: Yes, HD didn't mention index-linked savings certs, he just mentioned savings certs and didn't say whether his were fixed of IL.

Proxy for cash: I'd say they are better than a proxy for cash
  • if you hold ILSC there are very few (none?) cash accounts that currently beat inflation
  • a cash account has a limit of the FSCS llimit (£85k?) where there is no limit at NS&I
  • and the obvious one of being tax-free


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