Our bonus rates
You'll find details of our bonus rates across each product type, including business acquired by Scottish Friendly, below.
Bonus Recommendations - Scottish Friendly Assurance Main Fund
The following regular bonus declarations were recommended by the Board of Scottish Friendly Assurance Society in December 2022.
Conventional Ordinary Branch Business
The following regular bonus declarations were recommended by the Board of Scottish Friendly Assurance Society in December 2022.
The rates are detailed below
| Table | Bonus rate |
|---|---|
|
Tables W1, W2, E1, E2, N3, N4, N6, N7 & V1 |
A regular bonus of 0.75% on the sum assured and the previously declared bonus |
|
Tables A3, A7, P1, P4 & P6 (Deferred Annuities and Personal Pensions) |
A regular bonus of 0.75% on the sum assured and the previously declared bonus |
|
Old City of Glasgow Tables (pre 1975) |
A regular bonus of 0.75% on the sum assured and the previously declared bonus |
|
Policies issued by other societies including Old Scottish Friendly (pre transfer to City of Glasgow) |
A regular bonus of 0.75% on the sum assured and the previously declared bonus |
|
Tables 15, 17 & 25 |
A regular bonus of 0.75% on the sum assured and the previously declared bonus |
|
Tables G1 & B1 (Tax Exempt) |
A regular bonus of 1.0% of the sum assured and the previously declared bonus |
|
Resolution Bond |
A regular bonus of 0% of the sum assured and the previously declared bonus |
|
For Old Scottish Friendly (pre transfer to the City of Glasgow) business, tables 5, 8, 9 & 10 |
A regular bonus of 0.75% of the sum assured |
Where applicable, until further notice, the interim rate of regular bonus to be applied to claims will be equal to the rate declared for 2022.
Unitised Ordinary Branch Business
For unitised with profit business regular bonus is reflected within the unit prices and as such needs to be declared in advance of unit purchases. These rates are subject to review at any time and rates that apply from any future date may therefore be subject to amendment. The rates are detailed below.
| Product | Bonus rate |
|---|---|
|
Taxable - Growth & Security Bond and MoneyBuilder |
A rate of 1.25% per annum should be reflected as the annual rate of increase in the unit price of the fund |
|
Taxable - Mutual Investment Bond |
A rate of 1.25% per annum should be reflected as the annual rate of increase in the unit price of the fund |
|
Taxable - Scottish Bond Plus |
A rate of 1.75% per annum should be reflected as the annual rate of increase in the unit price of the fund |
|
Tax-Exempt - Bonus Bonds, Personal Pension and Bonus ISA |
A rate of 2.25% per annum should be reflected as the annual rate of increase in the unit price of the fund |
|
Tax-Exempt – My Plan ISA |
A rate of 0.25% per annum should be reflected as the annual rate of increase in the unit price of the fund |
Pioneer Business
The current regular bonus rates apply to the basic sum assured at the rate of 1.50% for tax-exempt business and 0.75% for taxable business.
Royal Standard Business
A regular bonus of 1.0% applies to the sum assured and previously declared bonuses.
Conventional Industrial Branch Business
| Product | Bonus rate |
|---|---|
|
Whole Life, Endowment and Pension Policies |
A regular bonus of 0% of sum assured |
|
Endowment Assurance with Deferred Life Assurance |
A regular bonus of 0% of sum assured |
|
Recurring Endowment 5 years |
A rate of 3.0% of each recurring endowment payment |
|
Recurring Endowment 10 years |
A rate of 8.0% of each recurring endowment payment. |
The Special Members’ Share
We're a mutual and with no shareholders we're owned by and run for the benefit of our members, which include our main fund With-Profits policyholders such as you.
As a With-Profits policyholder in our main fund you share in the profits (or losses) that Scottish Friendly makes each year - we like to call this the ‘Special Members’ Share’.
To ensure The Special Members’ Share is fair each year our Board, having considered advice from the With-Profits Actuary, decides how the underlying investment return (positive or negative) of the assets backing your policy should be increased or reduced to reflect any profits (or losses) arising in Scottish Friendly. The adjusted value is then reflected in the bonuses we declare and the payouts received.
The Special Members' Share has been an important contributor to policy value and, for example, With-Profits policyholders joining us before 2015 have seen a total enhancement to their investment value of 5.3% as a result of the Special Members’ Share.
Bonus Recommendations - Scottish Legal Life Fund
The following regular bonus declarations were recommended by the Board of Scottish Friendly Assurance Society in December 2021.
Conventional Ordinary Branch Business
The same rates of bonus will apply in respect of both the UK and the RoI business. The rates are detailed below
| Table | Regular bonus rate |
|---|---|
|
9, 10d & 11 |
2.25% p.a. compound |
|
11b |
Nil |
|
18 |
1.75% p.a. compound |
|
61 & 61b |
Nil |
|
80, 81, 82, 84, 84a, 86, 88 & 88a |
0.50% p.a. compound |
|
83, 85, 85a, 87, 89 & 89a |
0.50% p.a. compound |
|
201, 202, 203, 211, 212, 221, 222 and 231 |
1% p.a. compound |
|
281 & 282 |
1.0% p.a. compound |
Where applicable, until further notice, the interim rate of regular bonus to be applied to claims will be equal to the rate declared for 2022.
Unitised Ordinary Branch Business
For unitised with profit business regular bonus is reflected within the unit prices and as such needs to be declared in advance of unit purchases. These rates are subject to review at any time and rates that apply from any future date may therefore be subject to amendment. The rates are detailed below.
| Product | Regular bonus rate |
|---|---|
|
UK Taxable |
A rate of 1.75% per annum |
|
UK Tax-Exempt |
A rate of 2.25% per annum |
|
RoI |
A rate of 2.25% per annum |
These rates will be reflected as the annual rate of increase in the unit price of the fund.
Conventional Industrial Branch Business
The same rates of bonus will apply in respect of both the UK and the RoI business. The rates are detailed below.
| Table | Regular bonus rate |
|---|---|
|
1, 2, 3, 6, 21, 23 & 27 and Loyal Hearts 2, 3 & 7 |
0.75% p.a. simple |
|
4 & 22 and Loyal Hearts 4, 6 & 8 |
0.75% p.a. simple |
|
12 (a) |
Nil |
|
101, 111, 121 & 131 |
1.25% p.a. simple |
Where applicable, until further notice, the interim rate of regular bonus to be applied to claims will be equal to the rate declared for 2022.
Bonus Recommendations - Rational Shelley Fund and LANMAS Fund
Rational Shelley
The rates are detailed below.
| Product | Bonus rate |
|---|---|
|
Industrial Branch |
A regular bonus of 2% p.a. of the sum assured |
|
Ordinary Branch |
A regular bonus of 3% p.a. of the sum assured |
Where applicable, until further notice, the interim rate of regular bonus to be applied to claims will be equal to the rate declared for 2022.
LANMAS
For LANMAS the guaranteed rates of 3% and 0% will be applied to the unit price for policies commencing before and after July 1998 respectively. An annual bonus of 1% will apply to conventional with profits policies