Scottish Friendly Bond Maturing Soon

dunstonh

Scottish Bond! Jokers!

Whilst the product is fairly obsolete. The reasons for the low return is not really their fault.

lingwood

Ampthill_Ram wrote: »

Well, just found out that it has returned a 1.3% return on investment. Useless!! £1,800 invested at £15 per month over 10 years. £120 interest paid. And they have the cheek to ask you if you want to invest in an another Scottish Bond! Jokers!

But you could have "invested" in somthing different and been -£120 !

Also £15 per month you saved, you might have just wasted that amount, but now you have a nice amount of £1,800 you can put in a good ISA.

I speak from experince, I also have one of these products that matures next year. I started it when £20 per month was a lot of money to me, and I might of just wasted that on junk, but it forced me to save.

I also have to admit that I got caught up in the AXA cashbuilder plus (carol smiliey) but was lucky to get my money out due to the technical error.

10 years on I am a reformed saver having followed Martin for quite a while now.

Nosht

lingwood wrote: »

But you could have "invested" in somthing different and been -£120 !

Also £15 per month you saved, you might have just wasted that amount, but now you have a nice amount of £1,800 you can put in a good ISA.

I speak from experince, I also have one of these products that matures next year. I started it when £20 per month was a lot of money to me, and I might of just wasted that on junk, but it forced me to save.

Exactly the reason that I chose to do again for a smaller premium, but it will not be as successful as my first long-term Scottish Life With Profits Policy.

Regards,

N.

dunstonh

Exactly the reason that I chose to do again for a smaller premium, but it will not be as successful as my first long-term Scottish Life With Profits Policy.

The idea is good but there are better products. Use a regular contribution unit trust in an S&S ISA for example.

GetRealBabe

Like the other posters I've learned the hard way. Mine matures in May and am not hopeful. Never again.

The only plus point is that I didn't miss the £25 a month I invested and will get a lump sum payment to invest elsewhere.

EC12345

My policy matures in September. Been paying £20 over the last ten years so a total of £2,400 - found out that I will be getting £2,604 - so not bad but could be better - at least I did not lose any like some poor people I have read about. Anyway I am cashing in, saving some and spending some...

:rotfl:

azzaG

EC12345 wrote: »

My policy matures in September. Been paying £20 over the last ten years so a total of £2,400 - found out that I will be getting £2,604 - so not bad but could be better - at least I did not lose any like some poor people I have read about. Anyway I am cashing in, saving some and spending some...

:rotfl:

I think you may have missed some details there EC12345. I have a policy due to mature on the 5th Sept 2010 and have just received my cash in value. I paid in £20 a month for 10 years (also a total of £2400) and will receive a total of £3276 made up of a basic sum of £2606 plus revisionary bonus of £267 and terminal bonus of £402. That works out at aprox 6% interest tax free return (using a basic compound interest calculator). Not bad for a low risk product.

EC12345

azzaG wrote: »

I think you may have missed some details there EC12345. I have a policy due to mature on the 5th Sept 2010 and have just received my cash in value. I paid in £20 a month for 10 years (also a total of £2400) and will receive a total of £3276 made up of a basic sum of £2606 plus revisionary bonus of £267 and terminal bonus of £402. That works out at aprox 6% interest tax free return (using a basic compound interest calculator). Not bad for a low risk product.

Hello You have done really well on your bond - well done! Not sure what you mean though by missed some details - can youl let me know - if I means I should be getting more - let me know quickly I wish mine was worth the same as yours - maybe I have a different one.

dunstonh

Not bad for a low risk product.

Its not low risk. Its medium risk.

I have a policy due to mature on the 5th Sept 2010 and have just received my cash in value. I paid in £20 a month for 10 years (also a total of £2400) and will receive a total of £3276 made up of a basic sum of £2606 plus revisionary bonus of £267 and terminal bonus of £402.

Thats not bad. However, a slightly lower risk investment with Inv Perp monthly income plus in an S&S ISA on same basis would have paid £3771.12. That is the sort of alternative that would have been used 10 years ago (so i havent picked the best, as that would be a lot higher. Just the most likely).

Geoffers007

azzaG wrote: »

I think you may have missed some details there EC12345. I have a policy due to mature on the 5th Sept 2010 and have just received my cash in value. I paid in £20 a month for 10 years (also a total of £2400) and will receive a total of £3276 made up of a basic sum of £2606 plus revisionary bonus of £267 and terminal bonus of £402. That works out at aprox 6% interest tax free return (using a basic compound interest calculator). Not bad for a low risk product.

I'm interested to note that your basic sum is greater than the total amount you paid in. I (foolishly) took out one of these bonds 4 years ago at £25 per month and my basic of £2367 is considerably less then the £3000 I will end up paying, no doubt due to the life assurance charges. So, if annual bonuses continue at their present rate and the terminal bonus remains the same, I might get back £75 more than I paid in! Not one of my better investment decisions but alas if I pulled out now I would lose a huge chunk of what I've already invested.

To this day I cannot think why I failed to spot that even with good market conditions the potential return was always going to be low.