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Prudence bond rate is held at 3.25%

The Prudential looks to be halting the slide of its annual bonus rates, announcing that it is to maintain the present rates on its Prudence bond.

Last year, the annual bonus on the bond was 3.25 per cent. The bond now has 375,000 investors. The Pru say that in current market conditions, there is no need to make any more interim announcements on the bond&#39s annual bonus levels until February 2005.

A full bond rate announcement for its with-profits policies will be made on February 24 with the firm&#39s full-year results.

Informed Choice managing director Nick Bam-ford says: “It sounds positive. All of us would like bonus rates to be increasing but if you can picture the slide down, maybe we have reached a plateau and maybe we can look for-ward to bonus rates increasing in the future.”

Prudential UK chief executive Mark Wood says: “The strength of our fund and its diverse asset mix has enabled us to weather the tough markets of recent years which is good news for people saving and investing in their plans with the Pru. To reassure our PruBond savers, we have announced the Pru-Bond annual bonus earlier than usual.”

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