Friends Provident Endowment Advise?

Danfan

Can you help on this my 1st post!

We have finally got a settlement figure from them due to a complaint and help from this site(thank you all)
Is it best to :-
A)accept and put the amount+£25 pm into savings a/c,which would get it quite close to the maturity value.
B)Put the same amount in our VirginOne a/c
C)Leave as is which is a big? not knowing their payout track record.
Details as follows:-
Start date 3/12/90
maturity 3/12/011
Target Amount £11000
Declared bonus £1952.99
MGValue(inc bonuses)£6627.99
Premium £23.77 pm
Bonus added this year £4.89!!
Might get @4% 7290,5.5% 7840 8% 8840
Surrender value 5/4/06 £4989
Final Offer to date £6100.20

Thank you

ps I'll be back on line later as I'm out this evening.

Financial_Savvy

Hi Danfan,

Did you have to go to the FOS to get this?

EdInvestor

Danfan wrote:

Can you help on this my 1st post!

We have finally got a settlement figure from them due to a complaint and help from this site(thank you all)
Is it best to :-
A)accept and put the amount+£25 pm into savings a/c,which would get it quite close to the maturity value.
B)Put the same amount in our VirginOne a/c
C)Leave as is which is a big? not knowing their payout track record.

The best way forward is usually to accept the redress money, surrender or sell the endowment and use the resulting lump sum to reduce the mortgage anount owed , while upping the monthly mortgage payment by the amount of the monthly endowment premium.

This gives you a return equivalent to whatever the mortgage interest rate is, which is usually higher than the savings interest rate and is of course not subject to tax.

Savvy types usually check into whether it's also worth remortgaging to repayment at the same time.

Danfan

Many thanks EdInvestor.

It has enabled me to focus a lot better on our situation.I need to do some more research and maybe ask some more questions on the Forum regards remortgage/debt reduction to help see a clear path to retirement in 5 1/2 years time!!

Information for Financial_Savvy;

I used the Which letter generator to send in the initial complaint after reading about it on this site.Filled in all the details and got a good response from FP!The offer we felt was poor at the time so contacted FOS,filled in more paper work only to get a reply the same as FP.Which we have now accepted.I did find the paperwork very daunting but worthwhile in our case.

Financial_Savvy

Guys see this post.

http://forums.moneysavingexpert.com/showthread.html?p=2458130#post2458130