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Anyone in an over 50s plan


hssutton

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Anyone in an over 50s plan. I've never looked into this as my wife and I have put money on one side ready for the big day. I'm sure all of you have received numerous 'invites' from such as Axa Life. it seems a weekly occurance in my home.

Martin Lewis Telegraph

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spider9

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morddwyd

I think the point BT was making was, if you don't check rates every year the you can end up losing thousands.

In our case my wife and I have about £60k each in our ISAs which last year was with Halifax. The 'bonus' ended and we transfered to to bank of Scotland (same bank group!!) and they give us 2.75% instead of the 0.5% Halifax were offering.

This means we have £2700 extra interest this year! And that compounds up over susequent years, so one loses again if it's just left in a 'low interest' account. Certainly makes it very important to me to watch rates and transfer every year, exactly as BT said.

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johndrew

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The advertised 'Over 50s' plans were recently reviewed in TV and the consensus was not to touch them unless you could guarantee your death in the month following the payout qualifying period. I can't find a link to the TV programme but you may find the This Money article of interest.

Personally I would suggest a simple savings account for the purpose as many above have.

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al's left peg

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I am with sunnystaines on this one, I too was done over like a kipper with an endowment policy on my mortgage. after a prolonged two year fight with the said company I was told by the FSA I had won my case.

The compensation that the FSA thought was fair and just was laughable, so I still am lumped with a poorly advised endowment which is the financial vehicle to pay off my mortgage which matures in about 9 years time.

I have been fortunate enough to pay off a lump sum off the capital and reduce this shortfall myself, but it has left me with a very cynical attitude towards financial institutions and so called toothless watchdogs that the government set up to stop Joe Public getting ripped off.

What made it worse was a new employee started at a former workplace of mine a few years back as a forklift driver. He informed us that he used to be an insurance salesman and that the first years payments made to any private endowment policy go straight to the salesman's pocket as comission. That is on top of any fees paid for the policy in charges and set up costs.......No bloody wonder they do not perform that well eh?

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BT

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spider9

Exactly as you say. The ISA I closed was initially at about 3% and had dropped down over about 3 years to less than 1%, as happens with most savings accounts. You really have to be on top of them and check rates for all types of accounts on a regular basis. They usually go down but rarely go back up again.

We were in the bank on one occasion for a different reason waiting to see the 'Personal Banker' who was busy at the time and we were attended to by the lady Manager who reviewed our accounts. This was shortly after the interest rate crash a few years ago and we had lost about £700 a month from our savings interest. She advised us to put a good chunk of our savings into fixed term fixed rate bonds over 2 years. This now gives us about a 3% regular fixed rate income for the 2 years period, and is the way to go if you can tie the money up for a fixed period, and you can often get even better rates if you can commit for longer periods.

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spuds

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I had a 'interest rate' problem a few years ago, and what concerns me the most, is that most banks will tell you that the information is readily available. It possibly is, if you look hard enough, because the bank's don't seem to want to inform you direct.

But I suppose, when a bank can charge £12/£20 for sending a simple letter about your account, then these fees soon add up, and make bank interest rates a prime target?.

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morddwyd

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This thread is not about ISA, but is seeking advice about and over 50s plan.

Over a reasonable period An ISA, even at one half a percent interest,gives a better rate of return than an over fifties plan.

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BT

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An ISA, even at one half a percent interest,gives a better rate of return than an over fifties plan.

As has been said, unless you fall off your twig just after the qualifying period these plans aren't good value. When you look at them they are like the old Whole life policies that the '[nsurance Man' used to sell door to door many years ago. You paid your few pence a week and with a bit of luck would have enough to pay for your funeral when the time came, They were never an investment but purely insurance much the same as motor or home insurance.

As investments go there are a multitude of options, you need to shop around. ISAs are good as long as you keep up to date with interest rates, and if you want a bit of a gamble Premium Bonds are a better bet than the Lottery. Your investment is returnable and so far this year mine have returned 0.86% tax free, batter than most ordinary savings accounts.

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spuds

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Perhaps not taking into account the advertising, I was of the believe that funeral plans are based on a 'one off' lump sum payment so making it more of an investment plan than an insurance plan?.

While some people might be able to afford monthly payments, a lump sum plan could be well out of their financial reach?.

The same could be said for an ISA plan, and what is being discussed here, regarding final outcomes and interest rates. On a totally different matter, last week I was in discussions with my own provider of bank services, and how over the past years, their lack of communications have possibly effected my accounts and investments. What I am suggesting is that, some people do not have knowledge of these type of things, and are self reliant in getting help from the 'experts', some of whom might not be considering their customer's first and foremost?.

What's your views on the above mentioned?.

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Snec

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spuds

Yes, you are right, paying for funerals upfront in one payment is the way to go. Doing it this way saves a lot of money and a lot of stress.

As regards What I am suggesting is that, some people do not have knowledge of these type of things,

Again, you are right but it is not 'some' people, it is almost everyone and, as evidenced by the parlous state of the banks, particularly the banks own (for want of a better word) experts.

I honestly believe there are no experts in the money market now, only people who would like us to continue believing that they are. Actually this was probably always the case.

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