L&G cuts with-profits interim bonus rates for new business
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Legal and General is cutting the interim bonus rates on new business into its with-profits bonds and capital control bonds.
From November 1, 2010, the interim bonus rates offered by the with-profits funds will be reduced by 0.25 per cent to new business. The growth bond will have its interim bonus rate will be reduced from 3.25 to 3 per cent, while the with-profits income bond will see its rate reduced from 4.5 to 4.25 per cent.
The capital control growth bond will have its interim bonus rate cut from 3 to 2.5 per cent, while the capital control income bond’s bonus rate will be cut from 4.25 to 3.75 per cent. The capital control bond was launched in April 2010.
The final bonus rate on both the with-profits and capital control bonds will remain unchanged.
A spokesman for L&G says the changes have been made in line with market movements.
L&G’s with-profits business had £21.4bn of assets under management at December 31, 2009. Legal & General has approximately 700,000 With profits customers, spread across pensions, annuities, endowments and other savings products.
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