Scottish Widows cuts with-profits bonus rates

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Scottish Widows has announced further cuts its with-profits policies which sees the payouts on bonds reduced by 0.5%.

Rates on the Flexible Options bond growth fund - remain unchanged at 5% payout but regular bonus rates on the Flexible investment bonds, Jersey with-profits bonds and investments in the Flexible Options bond income fund (2002) are reduced by 0.5% with effect from July 1st. The newer Flexible Options bond income fund with investments from H1 2003 will see regular bonus payouts cut by 0.25%, albeit final bonus rates have increased, says Scottish Widows. Adrian Eastwood, actuarial director at Scottish Widows, says: "Stockmarkets still have a long way to rise to match their peak value...

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