Prudential With Profits Bond - worth keeping??

parcival

I have a prudence bond that is 9.5 years old. It has done OK but not stunning. Currently it has a modest Final Bonus and no exit penalties of any kind.

Does anyone have an opinion on whether this is worth keeping.

I ask because Aviva dished out some special bonuses to reflect the inherited estate that they had accumulated.

I know that the Pru have a large inherited estate and there had been talk of a special distribution to policy holders but all has gone silent - any views on whether something might happen in the next 5 years or so?

dunstonh

Does anyone have an opinion on whether this is worth keeping.

Compared to what is probably the next question to ask? i.e. what would you do or consider as an alternative.

any views on whether something might happen in the next 5 years or so?

They have been against it although it was looked at. i wouldnt put money on it. Plus, given the choice of Pru or Aviva I would take Pru on their WP.

Linton

I have one of those for much the same time. It has averaged 5.5% annually, tax paid, over the period. Seems pretty good to me for a reasonably safe investment - much less volatile than any shares, and very good compared with a cash ISA or a fixed term account after tax. Prudential have stated in the past that the returns would exceed any bank/building society account.

So, for what it does I would say it is good, but whether it is worth your keeping I would say depends on where it fits on your overall savings/investment plan and your balance between highly volatile but potentially lucrative funds, and poorly performing but safe bank savings. Also your tax situation could be relevent.

parcival

Thanks for replies.

I need safe investment. Thinking of Birmingham Midshires 5.05% for 5 years. I am non tax payer.

dunstonh

parcival wrote: »

Thanks for replies.

I need safe investment. Thinking of Birmingham Midshires 5.05% for 5 years. I am non tax payer.

In that case, with that limited criteria, I would personally stick with Pru as you would expect them to come in with more than that on average. The few Pru WP bonds on my books certainly have. Of course, that is just an opinion here.