With profits bond

[Aprillove]

I invested �5000 in a 'with profits' bond in December 2001. The latest statement says it is now worth �5768. Is this a good rate of return or not? Should I keep it or cash it in? It is '...mainly in gilts and fixed interest, but there is also some investment in equities and property.'
Thanks a lot

[dasherman]

Your 'investment' has gone up by about 2.4% per year,so no it's not a very good return. Infact when you factor in inflation you have probably lost money in real terms.
Had you put it in the building society it could now be worth about::-

�6325 at 4% interest rate
�6700 at 5% " "
�7090 at 6% " "

[Aprillove]

Thanks, dasherman
I'll move it asap.

[Whoever]

Before you cash it in, check that there isn't a penalty. involved. Quite a lot of With Profits bonds have a penalty imposed for cashing them before certain dates.