Norwich Union has announced an increase in the With Profits fund bonuses. The regular bonus rates payable on new unitised policies in 2006 will be 4.5%, increased from 4% for pension policies. Stakeholder pensions will pay out 4%, raised from 3.2%, while life policies offer 4.5%, plus a first year final bonus of 1.75%. Offshore bonds will pay out 5% in sterling, and 4.75% in Euros or dollars plus the same first year final bonus of 1.75%.
Our view:
NU have continued to lead in the recovery of bonus rates. The reality for all providers as ever will be what happens in poorer investment times. Search the news archive for more on 'with profits'.