Endowment performance with current interest rates

Pernod_2

I am looking for some advice......I have a few endowments all set to mature in 2015 to a set combined figure of £65k. However assuming that the growth of these was based on the higher value attracting a reasonable interest rate in their last few years, I am concerned as to how they will perform in the last few years with interest rates at an all time low. I already had plenty of red warning letters and have not been able to succeed in getting any compensation for them. I am paying £130 per month to them. As far as i can see my options are:
1. Do nothing and hope the interest rate recovers and that the termination bonus is good.
2. Freeze any further payments to the endowments and divert the £130 straight to the mortgage, but keep the endowments and hope to get a bonus in 4 years as they mature (Not sure if I can do this?)
3. Cash in the endowments and use the capital towards the mortgage now, as currently paying 5.6% interest.

Any help with this would be most welcome

dunstonh

However assuming that the growth of these was based on the higher value attracting a reasonable interest rate in their last few years, I am concerned as to how they will perform in the last few years with interest rates at an all time low.

Endowments use investments, not savings. So, from a direct point of view, interest rates have no impact on your endowment (unless you happen to be utilising a cash/deposit fund in your fund selection).

We cant answer the questions you have as they require specific knowledge about the endowment policy you have. Chances are that surrender at this late stage though would not be the best option. Possible but statistically, less likely.