PruBond to pay 3.25% with-profits annual bonus

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Prudential has this morning announced it will maintain its current bonus rate on the PruBond to give 375,000 policyholders an annual bonus of 3.25% on with-profits investments.

Although the bonus will not be applied to Pru’s with-profits bond until March 1, 2005, the life insurer says the overall total return on premiums has been strong since March 2004 to 5% return, net of fund tax and charges, as it includes the 1.75% final bonus offered earlier this year. Statistics presented by the Pru reveal bonuses added to the PruBond over 10 years increase the value of the bond to £18,448, compared with the average balanced managed fund return of just £16,029 or £17,676 in a UK All-Companies life fund. Over the five-year period, however, that amount decreases signifi...

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