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Fund Information

With-Profits Annual Bonus Rates

New With-Profits annual bonus rates effective 1st April 2020

Bonus on your With-Profits Fund

There are two types of bonus which may be added to a With-Profits Fund investment. An annual or reversionary bonus may be added every year, although it can be more frequent depending on market conditions. A terminal or final bonus may be added at maturity, surrender, or upon death or when the money is moved out of the With-Profits Fund.

Annual Bonus Rates from 1st April 2020

The With-Profits Fund has delivered mostly positive returns over the past few years. Equity markets performed well in 2019 and the overall return for the fund for the year was positive. Our solvency position continues to be strong, therefore we were able to declare, as annual bonus for 2019, the interim rates in force over 2019.

Interest rates have fallen over recent years and future returns expected from the With-Profits Fund assets have reduced, however this year we have been able to maintain the interim bonus rates for most of our products, which is good news for our policyholders.

How are annual bonuses added to contracts?

For conventional With-Profits Fund business, the bonus is added as a percentage addition to the basic sum assured (or pension) plus attaching bonuses. For unitised With-Profits Fund business annual bonuses are added in two ways. Depending on the type of policy bonuses are added by either increasing the price of the With-Profits Fund units each day or by adding additional With-Profits Fund units to the policy. A combination of the methods is used for those Personal Pension Plan and Capital Investment Bond policies that have a guaranteed minimum bonus rate.

The Annual Bonus Rates in More Detail

Your annual statement will provide you with the information to identify your product and the fund series that you are invested in.

Product 2018 Declared 2019 Interim 2019 Declared 2020 Interim
Life Fund        
Endowments 2.25% 2.25% 2.25% 2.25%
Whole of Life - Entry date before 1983 2.25% 2.25% 2.25% 2.25%
Whole of Life - Entry date after 1982 2.25% 1.75% 1.75% 1.50%
         
Capital Investment Bond - Series 1 4.00%* 4.00%* 4.00%* 4.00%*
Capital Investment Bond - Series 2 3.25% 3.25% 3.25% 3.00%
         
Flexibond - Series 1 3.75% 3.75% 3.75% 3.75%
Flexibond - Series 2 3.75% 3.75% 3.75% 3.75%
Flexibond - Series 3 2.75% 2.75% 2.75% 2.75%
Flexibond - Series 4 2.25% 2.25% 2.25% 2.25% 
Flexibond - Series 1A 2.25% 2.25% 2.25% 2.25% 
Flexibond - Series 2A 2.25% 2.25%  2.25% 2.25% 
Flexibond - Series 3A 2.25% 2.25% 2.25%  2.25% 
         
Vintage Bond - Series 1 & 2 paying for guarantee 3.75% 3.75% 3.75% 3.75%
Vintage Bond - Series 1 & 2 opted out of guarantee 2.75% 2.75% 2.75% 2.75%
         
Impaired life annuities in payment (Structured settlements) 3.20% N/A 1.60% N/A

Rates quoted for Flexibond and Vintage Bond are before deduction of the annual management charge (AMC). The AMC is applied after the addition of the bonus quoted in the table and effectively reduces the bonus rate quoted.

Rates quoted for Capital Investment Bond (CIB) are after allowance for the AMC.

*Rates for Capital Investment Bond Series 1 are inclusive of the guaranteed minimum rate of 3%.

Product 2018 Declared 2019 Interim 2019 Declared 2020 Interim
Pension Business Fund
Conventional With-Profits Fund pensions        
Deferred Annuities 0.00% 0.00% 0.00% 0.00%
Pure Endowments 0.20% 0.20% 0.20% 0.20%
With-profits annuities in payment 3.2% N/A 1.6% N/A
         
Accumulating With-Profits Fund pensions        
Personal Pension Plan (PPP) - Series 1 4.25%* 4.25%* 4.25%* 4.25%*
Personal Pension Plan (PPP) - Series 2 3.75% 3.75% 3.75% 3.50%
With-Profits PPP - Series 3 2.75% 2.75% 2.75% 2.75%
Personal Pension Account - Series 4 2.50% 2.50% 2.50% 2.50%
Select Pension Plan With-Profits  Risk Level 2 N/A N/A N/A 1.75%
Select Pension Plan With-Profits Risk Level 3 N/A N/A N/A 2.50%
         
General Annuity Fund        
Agents’ pension arrangements 2.25% 2.25% 2.25% 2.25%
         
ISA Fund        
Shrewd Savings Plan ISA - Series 1 3.75% 3.75% 3.75% 3.75%
Shrewd Savings Plan ISA - Series 2 3.75% 3.75% 3.75% 3.75%
Shrewd Savings Plan ISA - Series 3 3.00% 3.00% 3.00% 3.00%
Shrewd Savings Plan ISA - Series 4 2.50% 2.50% 2.50% 2.50%
Shrewd Savings Plan ISA - Series 1A 2.50% 2.50% 2.50% 2.50%
Shrewd Savings Plan ISA - Series 2A 2.50% 2.50% 2.50% 2.50%
Shrewd Savings Plan ISA - Series 3A 2.50% 2.50% 2.50% 2.50%

Rates quoted for the Personal Pension Account (Series 4), the Select Pension Plan and the Shrewd Savings Plan ISA are before deduction of the annual management charge (AMC). The AMC is applied after the addition of the bonus quoted in the table and effectively reduces the bonus rate quoted.

Rates quoted for Personal Pension Series 1, 2 and 3 are after allowance for the AMC.

*Rates for Personal Pension Plan Series 1 are inclusive of the guaranteed minimum rate of 4%.

Capital Access Bond Annual Bonus Rates effective 15th June 2020

Capital Access Bond: Investment Band

With Effect From £5,000 - £24,999 £25,000 - £49,999 £50,000 - £99,999 £100,000 - £249,999 £250,000 - £499,999 £500,000+
1 January 2016 - 31 December 2016 0.05% 0.05% 0.05% 0.05% 0.40% 0.45%
1 January 2017 - 12 December 2017 0.05% 0.05% 0.05% 0.05% 0.40% 0.45%
13 December 2017 - 10 September 2018 0.10% 0.10% 0.15% 0.40% 0.50% 0.60%
11 September 2018 - 25 November 2018 0.15% 0.20% 0.40% 0.60% 0.70% 0.75%
26 November 2018 - 12 April 2020 0.20% 0.25% 0.50% 0.70% 0.80% 0.85%
13 April 2020 - 14 June 2020 0.10% 0.15% 0.35% 0.55% 0.60% 0.65%
15 June onwards 0.05% 0.05% 0.20% 0.25% 0.30% 0.35%