Deal or No Deal

BACKFRMTHEEDGE

Do people think I should stick or twist on the following:-

Surrender value £21,823.Norwich Union. Taken out in 1987/ matures 2012

Total guarateed payment £28,001

Projected 4% £34,300
5% 336,400
6% £38,600

Premium £61.95 per mth

Have had an online offer from app for £25k and an offer in writing frm another endowment buyer of same(somebody caleed !st Polic). Does this mean I should keep it?

My mortgage is no longer linked to this policy. We have as much money in ISAs as poss...we are about to take a tracker rate of 4.9 on our mortgage- Don't mind abit of risk if it looks worth it?

homer_j_3

If you were to invest the money at its current value and gain an average of 3% interest per year net of tax then you should get something like the following:

This does not take into account that you could continue paying £60 per month into a savings account:

Year 1 (2007)= 25k * 3% = £750
Year 2 (2008)= 25750 *3% = 772.50
Year 3 (2009)= 26522.50 *3% = 795.68
Year 4 (2010)= 27318.18 * 3% = 819.55
Year 5 (2011)= 28137.73 * 3% = 844.13
Year 6 (2012)=28981.86

If you pay the £60 per month then you are getting £720 additional per year into the account but because you are not investing in lumpsums so its a little more complex for working interest out. In its simlpest yet not most accurate calc you could say that a further £4k may be accrued to this amount so u may get towards the 4% projection.

I cant advise whether you are better leaving it or taking it but hopefully that gives you an idea. You could probably get a better int rate and you could invest in isa to get some tax free if you havent already done so.

Anyway I will let the more serious investment people give their take

BACKFRMTHEEDGE

Thanks alot.