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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.”


Slower rates of change in protection market

With product changes and over 40 rate changes, the protection market during 2003 was volatile to say the least.In 2004, we expect further rate and product changes. Liverpool Victoria has recently announced a rate change for January but hopefully we will see less frequency and less volatility. The market should stabilise compared with 2003.The critical-illness […]

Axa Sun Life cuts regular bonus rate

Axa Sun Life is cutting payouts on its former Equity & Law conventional life and pensions policies by 1 per cent, effective from this month. The regular bonus rates for 2003 and interim rates for 2004 are 2 per cent, down from 3 per cent in 2002. The announcement affects around 10 per cent of […]

From Middle Earth to Middle England

2003 finished on a high note with the premiere of Lord of the Rings so I am hoping that 2004 will live up to my greatly inflated expectations. I predict that my stomach will also grow to inflated proportions as I remain unable to refuse dessert.Predictions for the mortgage market are a little vague but […]

Independent view

Dare I say it, but the pension review still lingers on like a dark shadow over the reputation of pensions and everyone connected with them. The public have been left with a nasty taste and severe doubts about what to do for the best.Having said that, we have definitely noticed an upturn in morale among […]

Parental leave and pensions

Fiona Hanrahan  – Senior Product Insight and Technical Support Analyst We are often asked how parental leave impacts workplace pension schemes in terms of funding in general, auto enrolment and salary exchange. This article will explain each of these. How does parental leave impact the funding of workplace pension schemes? A member of a defined […]


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