NS&I index-linked certificates.

[Vimto]

NS&I have just withdrawn their fixed-rate and index-linked certificates from sale. Existing certificates run for 3 or 5 years before they mature when they used to be either cashed or re-invested for a further period of another 3 or 5 years. How are existing certificates going to be treated; will holders be forced to cash them or re-invest in another NS&I product or will it be possible to re-invest them in the same certificates by letting them run on without opting for either of these options as used to be the case?Many investors have built up large holdings over the years by buying different issues and it would seem extreme to make investors have to find a new home for large amounts of cash. I would be pleased to hear from anyone who can give me a definitive answer to this query.

[buildersmate]

I would phone NS&I on 0500 007 007 to ask.
Their website is not clear about this, and still today (3 days after the announcement) contains the comment that 'maturing certificates can be re-invested'.
I suspect that this is true and that it is actually only requests for NEW certificates that have been stopped.
Do let us know.

[dzug2]

My reading of the situation is that existing certificates will roll over for another 3 or 5 years as in the past.

This is certainly the case with another product that has been withdrawn - Guaranteed Income Bonds.

[Vimto]

Hello hod-carrier, yes, you are quite right, existing holdings can be rolled-over on maturity but no new applications will be accepted. I suggested to the lady I spoke to that maybe the powers that be could make this clear on their website as I'm sure that my wait of twenty minutes or so for them to answer was taken up by at least ten minutes of people wanting the same information that I was asking about; she said she would pass it along the line but I wouldn't hold your breath! Thanks for the telephone number, Vimto.

[Vimto]

Thanks for your message also dzug2. It came through as I was writing my last message.