In the long line of bonus cuts, Scottish Mutual have now joined the party. Unitised with profits bonus rates last year amounted to 4.75% for savings and investments. The new announcement reduces those bonuses to 4%.
For pensions, last year's rate of 5.5% for pensions has been reduced to 4.5%. All policies maturing from 1 April 2002 will be affected by the reduced bonus rates.
As with all other providers, Scottish Mutual blamed the reduction on poor market conditions over the past two years. Public relations manager for Scottish Mutual, Christine McAllister said "although pay outs are lower this year, returns for our investors stack up well against those available elsewhere".