We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Should I accept endowment offer?
gra_3
Posts: 9 Forumite
I took out an endowment with CIS in 1991 "to pay off an approx £20k mortgage. Although I wasn't buying a house at the time the advisor recommended taking out the policy saying "it would be like paying off your mortgage early without paying the interest - until you buy the house"
When I eventually bought a house 2 years ago (don't ask why it took so long!), endowments where being given bad press and the endowment would have been a small percentage of the cost, so I kept the endowment as a savings scheme.
I recently complained to CIS about the shortfall. They have offered to repay the premiums to date plus 4% (less 20% tax).
I could use the money at the moment, is this a good/reasonable offer?
Is the interest on the tax earnings related i.e. 40% for higher rate earners?
Help will be much appreciated!
When I eventually bought a house 2 years ago (don't ask why it took so long!), endowments where being given bad press and the endowment would have been a small percentage of the cost, so I kept the endowment as a savings scheme.
I recently complained to CIS about the shortfall. They have offered to repay the premiums to date plus 4% (less 20% tax).
I could use the money at the moment, is this a good/reasonable offer?
Is the interest on the tax earnings related i.e. 40% for higher rate earners?
Help will be much appreciated!
Waddle you do eh?
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards