Scottish Friendly Moneybuilder ...

cb2490

Hi,

I started a savings scheme with Scottish Friendly about two years ago without looking too much at the details .. thought it was just a good idea to start putting by.

Got my first statement and I now realise it's for 15 years and obviously I may not get out what I put in in that time.

I've paid just over £500 so far. Is it worth leaving it now or am I as well cancelling, cutting my losses and putting the monthly payments elsewhere?

I have 5k in a savings account so I can suppose I could add to this but I really have no clue what's best.

Help. :rotfl:

dunstonh

I started a savings scheme with Scottish Friendly about two years ago without looking too much at the details .. thought it was just a good idea to start putting by.

These types of plans went obsolete around 20 years ago.

Got my first statement and I now realise it's for 15 years and obviously I may not get out what I put in in that time.

Whilst the plan may be obsolete, the fact you may get less than you pay in is normal for investments. Even the modern types.

Is it worth leaving it now or am I as well cancelling, cutting my losses and putting the monthly payments elsewhere?

You would need to do a cost comparison to see how much early surrender will pay you back vs staying put. Plus, your reason for pulling it is not a strong reason. You think that way due to lack of knowledge. So, maybe you should read up on the subject of investments first before making a decision.

bigfreddiel

I would get out regardless of losses these are the worst type of so called savings accounts ever and should come with a wealth warning!

Cheers fj

cb2490

Hi,

Thanks to you both for your replies ..

Quite different so I guess I do need to look into it further.

You would need to do a cost comparison to see how much early surrender will pay you back vs staying put. Plus, your reason for pulling it is not a strong reason. You think that way due to lack of knowledge. So, maybe you should read up on the subject of investments first before making a decision.

I totally agree it's lack of knowledge and that's why I posted here. The minimum guaranteed pay-out at 15 years is roughly the same loss I'd be making if I pulled out now.

Thanks again.