If it goes into a savings account paying a miserly rate of interest, the with-profits bond
might look comparatively generous!
However, where do you put money withdrawn from a with-profits bond
? Connolly says: "It may be possible to make an internal switch within your policy.
Under the move, someone with a typical with-profits bond
into which they paid pounds 30,000 in 2001 will receive a total special bonus of pounds 4500.
The surrender value is the value that you would have received that day if you had encashed it so will include any early exit penalties, and if it's a with-profits bond
, any market value reduction and terminal bonus.
Over the last few years the stock market has recovered impressively but many investors have asked why their With-Profits Bond
hasn't kept pace with this recovery.
I have a with-profits bond
for pounds 25,000 and a further pounds 50,000 to invest.
It said a PS10,000 with-profits bond
purchased 10 years ago is now worth PS17,082, while the same amount of money invested in a typical savings account would have grown to PS12,228.
Precious little in the piggy: Many with-profits bond
investors face grim reading in annual reports now being issued
Q: On the advice of HSBC Bank, I invested pounds 40,000 in a with-profits bond
with Legal & General.
I HAVE a with-profits bond
in which I invested Pounds 10,000 three years ago.
As many as 200,000 with-profits bond
holders could get the chance to scrap their policies in 2011, without penalty; * One option on poorly-performing policies may be to leave it paid up.