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Scottish Friendly bonds are they worth it?
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skaps
Posts: 2,255 Forumite
I am coming to the end of a 10 year bond that I have with Scottish Friendly and wondered are they worth it. Does the interest work out to be better than an isa?
MFW 2016 No 68 £1300/£8500 No new toiletries Cook sth different
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complete waste of time - mine came to an end this month - £3000 in £3360 out - i really should have paid the £25/month into my pension - but 10 years ago i didn't know what i know now.I am coming to the end of a 10 year bond that I have with Scottish Friendly and wondered are they worth it. Does the interest work out to be better than an isa?
the problem with these products is that we the un-informed public get sucked in by the tax-free bit - the glossy brochures - the unrealistic projections - and that its only £10/15/25 per month.
My advice - put your money somewhere else.
hope that helps
fj0 -
Thanks it does. Was thinking the same thing.MFW 2016 No 68 £1300/£8500 No new toiletries Cook sth different0
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An ISA is far more flexible and you should be able to get better returns if you choose the right funds.Remember the saying: if it looks too good to be true it almost certainly is.0
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Does the interest work out to be better than an isa?
1 - they dont pay interest
2 - you havent said what investments you would have inside the ISA. So, we cant compare.
However, these plans are woefully obsolete. They are expensive and the investment options very weak and the tax benefit is largely non existant (too small to benefit really from CGT and the charges wipe out the tiny tax gain that does exist).I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I was putting in £25 a month to the bond, so over 10 years in an isa based on the current isa rate of 3% how much would I have had?MFW 2016 No 68 £1300/£8500 No new toiletries Cook sth different0
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A share based ISA would not have a rate of 3%, return is variable depending on the fund and the funds you have bought inside it.
If you are only considering a cash ISA then that is different to the bond you held previously.Remember the saying: if it looks too good to be true it almost certainly is.0 -
i had a SF bond or whatever its called from 1999 to 2009, infact my wife did too.
like others back in 99 i didnt understand things and this was the 1st savings tool for me.
£6000.00 in and abount £6032.00 out.
rubbish i know but in 2009 it was £6032.00ish i wouldnt have had as the £50 per month would have been frittered away.
so yes, your returns are rubbish and theres better things to do with that cash now but it is a lump sum you probably wouldnt have had.0
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