National Savings and Investments Terms and Conditions change


M

MJA

It hasn't been mentioned here yet, but National Savings and
Investments announced changes in terms and conditions to be introduced
from 20th September. This affects a number of products, but the one
that most worries me is Index Linked Savings Certificates -- see
<www.nsandi.com/changes-indexlinkedsavingscertificates> for details.

In the past it has been possible to cash them in after one year with
no loss of interest or indexation. In the future, that is for
certificates purchased after 20th September (if they are on sale) or
for certificates that roll over after that date there will be a
penalty of 90 days interest and loss of index-linking for the _whole_
certificate for that year.

This will hit partial redemptions badly -- e.g. redeeming 100 pounds
of a 15,000 pound certificate. A partial work-around would be not to
purchase a 15,000 pound certificate in future, but instead to purchase
15 individual certificates of 1,000 pounds, or even 150 certificates
of 100 pounds (the minimum investment per certificate). This would
not mitigate against the 90 day penalty, but at least it will avoid
the loss of index-linking for the amount that remains invested.

We don't know how NS&I will react to a request to purchase 150
certificates of 100 pounds -- there are no certificates on sale at the
moment. I assume they have considered this and will not have to issue
150 individual paper certificates.

MJA
 
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A

Allan

We don't know how NS&I will react to a request to purchase 150
certificates of 100 pounds -- there are no certificates on sale at the
moment. I assume they have considered this and will not have to issue
150 individual paper certificates.
Interesting idea. And at least (which didn't get picked up by any of the
newspaper report that I read about the changes) NS&I are offering online
admin. saving paper (don't know how it will work, but the online admin
of Premium bonds is pretty OK).
 
A

Allan

It hasn't been mentioned here yet, but National Savings and
Investments announced changes in terms and conditions to be introduced
from 20th September. This affects a number of products, but the one
that most worries me is Index Linked Savings Certificates -- see
<www.nsandi.com/changes-indexlinkedsavingscertificates> for details.
Can't really see much in the way of a difference: they're bringing
savings certificates in line with their other products.

IMHO, if one buys a product that says 5-year term, it does what it says
on the tin: people who got out early have been lucky up to now. It
seems to me that NS&I are acting like other savings institutions i.e.
interest penalty for early redemption. At least NS&I have the grace to
let us know in advance (not during the life of the certificate) and
there's a 30-day transition period.

Sounds pretty good to me.

Frankly, the media seem to like to bash NS&I. Fine with me. I like the
products. If the media bash NS&I, that means people will defect in
their droves (not) and leave more for me. Or maybe that's what those
journos want so they can fill their own boots...

http://www.nsandi.com/nsi-announces-changes-its-fixed-rate-range
 
T

Tim Richards

Interesting idea. And at least (which didn't get picked up by any of the
newspaper report that I read about the changes) NS&I are offering online
admin. saving paper (don't know how it will work, but the online admin
of Premium bonds is pretty OK).
It's ok until you try to withdraw your Bonds.

You have to answer a number of security questions even though you've
managed to log in correctly and then they insist upon telephoning you
(automated call granted but a pain nevertheless).

Online sort of means online I thought.

Oddly enough, when you're depositing money (buying Bonds) they don't
insist upon any sort of "security" checks at all.
 
A

alan

We don't know how NS&I will react to a request to purchase 150
certificates of 100 pounds -- there are no certificates on sale at the
moment. I assume they have considered this and will not have to issue
150 individual paper certificates.
1 application for a single certificate per person per working day. If
they then close the offer once the target amount is reached you may be
unlucky in investing more than a small amount in total.
 
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R

RobertL

At least NS&I have the grace to
let us know in advance (not during the life of the certificate) and
there's a 30-day transition period.

It's also pretty good that they will let you extend the IL certificates beyond the maturity date even when they are not issuing any IL certificates at the time.

Robert
 
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