With profit bond "performance"

This is Money

A useful article comparing how these have done over the last five years.

Naming the bond villains

"....... nearly half the 39 companies paid investors 3% a year or less over the last five years. That's less than the 3.1% you could have earned in an average risk-free savings account.

When set against stock market performance, it's obvious how dismal these returns are. The FTSE All Share Index, which measures the prices of shares, has risen by 33.2pc over the last five years, or an average 6.75% a year.....

And some still charge market value reductions if you withdraw your cash

......Figures show that £10,000 with AXA will have grown to just £11,077 after five years to October 1 - a poor annual growth rate of just 2.1%. But anyone cashing in the bond will be charged a penalty of more than £1,000, leaving them with just £9,970. So, after having your money for five years, AXA has actually managed to lose some.

Eagle Star's appalling investment performance means it has defied rising stock and bond markets, managing to turn £10,000 into £9,977 after five years.

Despite this, the company has the cheek to take a further £503 in charges, leaving you with just £9,474.

Britannia, London Life and Ecclesiastical are also among the worst performers in the past five years (see above). Others including Liverpool Victoria (+1.1%) Clerical Medical (+2.5%), Friends Provident (+3%), NPI (+2.9%), Pearl (+1.6%), Phoenix (+1.5%) and Scottish Widows (+ 2pc) all put in a below-average performance.

Top performers include National Friendly Society at £15,643, or +9.4pc a year, Winterthur at £14,715 (+8%) and Sheffield Mutual at £14,155 (+7.2pc).

The popular Prudential bond on sale five years ago turned £10,000 into £13,163, giving an annual return of +5.7% and Legal & General Growth +5.5pc. At Norwich Union the Portfolio Level bond managed an average +3.4%."