NS&I Index-Linked conditions

[Panamax]

I'm probably late at this party but I've only just seen that NS&I have screwed down even tighter on Index-Linked.

Any renewed Index-Linked Certificates can't be withdrawn AT ALL until the next maturity date. (Previously you could withdraw early but would lose 90 days interest or something along those lines.)

And, guess what, if you die your estate is stuck with the certificates right through to maturity date. So it could easily take executors more than three years to wind up even a simple estate.

One can only wonder why such an extreme position has been taken by NS&I. Few people will still hold Index-Linked and many of those will be elderly. I anticipate many will avoid renewing for fear of jamming their estate. It all seems so very unnecessary.

[alscar]

I believe this only applies to any such certificates issued post July 23 and on any issued prior to this they can still be cancelled upon death.
I’m not even sure any were even issued after the 2023 date ?
My MIL died a year ago and her index linked certificates were all cashed in and proceeds paid to her husband very easily.

[xeny]

Panamax said:

One can only wonder why such an extreme position has been taken by NS&I. .

They're clearly very keen to get rid of an inflation linked liability.

Some of my emergency fund has lived in them for ages, and as they've introduced the ban on early redemption, I've fiddled with duration so the maturations are evenly spread, but I do wonder about migrating it all to some index linked gilts.

[trevalvole]

alscar said:

I believe this only applies to any such certificates issued post July 23 and on any issued prior to this they can still be cancelled upon death.
I’m not even sure any were even issued after the 2023 date ?

I agree that it seems unnecessary. The ones issued after the 2023 date will all be reinvestment of maturing certificates.

[Panamax]

xeny said:

They're clearly very keen to get rid of an inflation linked liability.

But at least there's a generous fixed addition over and above inflation. A full 0.01% of interest.

That's one percent innit?

No matey, you invest £100 and at the end of the year they add 1p of interest. Don't spend it all at once...