Friendly societies investment bonds

NKS

I have recently received some advertising from the Scottish Friendly Society about the tax free investment bond where you can invest up to £25/month in addition to your ISA allowance (all used up) but you are tied up for 10 years (not a problem if it's likely to be worthwhile) - never heard of these before. I've done a bit of reading around and can't seem to get a feel for whether these are decent value or not. Any thoughts from anyone out there?

miaxmia

No, but I regularly receive mail from these people so shall be interested if anyone out there has any views.

savingpennies

Just to give you an example. I took one of these out for my eldest daughter in 1992. In those days you could only pay a max. of £18 a month. I've paid in £18 for each of 151 months (until Dec. 2005) a total of £2781 (if my maths is right). The annual statment for the end of Dec 2005 said her policy was now worth £3701.53. Hope this helps.

dunstonh

These are generally very very poor value nowdays. Basically, they are long past their sell by date and should be put to rest with all the other with profits savings plans.