Is there a better home for my money?

Ali660

Unfortunately, nobody answered this for me yesterday ... would REALLY appreciate your thoughts ...

We have been saving £30 per month (Prudential With Profits Long Term Saver) for 14 years and 16 months ago increased this amount to £50. I'm not sure whether this was the right thing to do now.

Lastest account summary reads as follows:

Total payments since account started: £5250
Current cash in value: £7026 ............. Good return??

Hubby is disappointed in performance - IS THERE A BETTER HOME FOR OUR MONEY?

emma396

whats the interest rate? doesn't look too amazing i would say. and do they still offer the account? i was looking thru my mum's paying in books with her for accounts she hadn't used for a long time. many of the accounts she had were no longer being offered to new customers, so 'old accounts' and the interest on them were very poor.

Ali660

Thanks for taking the time to reply ... that's the trouble I'm having - there is no interest stated on the annual statement. It's similar to an endowment in that it has regular bonus rates of 3.25% and a final bonus of 3.25%.

The statement also states that "The savings into your Prudence Savings Account could be worth the following, if investments grow at:

01/08/2017 4% £14,600 8% £18,500

I'm pretty sure I would be better off putting into a high interest saver but it's handy knowing that this money isn't easy to access.

Also, Prudential customers are possibly due a windfall, although they are dragging their heals over this so it is tempting to hang on for now.

I feel like they are dangling a carrot - I also need to call them as I am not sure if this kind of account would be eligible for a windfall (in news reports they always mention the word endowment).

Ali

Browntrout_2

14 years at £30pm is 168 payments = £5040
16 months at £50 = £800

so your numbers do not add up of total payments = £5250

So for instance if I take £5250 as 175 payments of £30 which produces £7026 then I calculate an annual interest rate of 3.8%.

As you say the policy is due to be part of a potential windfall as it is with profits related and started before 14th March 2007. Details are here;

http://www.pru.co.uk/help_support/literature/existing_customers/pib_psa/

Maybe you could stop paying into this and open an ISA holding cash and/or stocks and shares instead.

You need to check that you can do this without incurring a penalty. Certainly any advice you receive from the Pru will be slanted towards keeping you and your payments on their books.

Ali660

Thanks for your reply ... I have been trying to find the info on the website but had not come across this page.

I wasn't sure that my type of a/c would be eligible for windfall but it looks like it might. I'll hang on a little longer then run for the hills!

Ali