Replacement for cashed in regular Scottish Friendly policy

mjwraw

I'm just about to cash in a 10 year regular savings bond held with Scottish Friendly. It was for £25 a month and paid out £3280, which seems reasonable to me ? Now I want to start something similar again, but the choices are bewildering ! So I'm tempted to just start another with Scottish Friendly, but could I be doing better with this £25 a month, whether over 1 year, 5 years or 10 years ?

dunstonh

So I'm tempted to just start another with Scottish Friendly

why? Obsolete, expensive and the tax free status isnt really as tax free as you think (i.e. you are not going to be worried about cgt on £25pm premium and the tax credit on equities is the same as other tax wrappers or unwrapped.

but could I be doing better with this £25 a month, whether over 1 year, 5 years or 10 years ?

The Scottish friendly plan is no good for 1 year or 5 years. So, you need to think about your objectives. There is no point starting something designed for 10-15 years if you only are looking at 1 year. If it is long term then a better option is a stocks and shares ISA.

cardsharps

mjwraw wrote: »

. It was for £25 a month and paid out £3280, which seems reasonable to me ?

It's pants. When you take inflation into consideration you've lost a bundle. All you did for the last 10 years was pay charges to Socttish Friendly, they must love you.

EC12345

I have a SF policy maturing 1 September this year. Paid £20 over 10 years - so paid £2,400. My policy is worth £2,604.85 which I should be getting in a couple of weeks. I am glad I am getting back what I paid in - I have read a couple of threads on this board about loads of people getting less than they paid in. I am pleased I am getting a little bit more but wouldn't take out another policy with them - would rather put my £20 somewhere else.

Good luck though whatever you do.