With-profits investors at Standard Life miss out on stock market revival

A 25-year 50-monthly endowment plan will this year mature at 28,139, compared with 32,534 last year. A 20-year 200 per month pension will be 82,301 compared with last year's nest egg of 87,095.

Finally, a with-profits bond investment made five years ago of 10,000 will have a cash-in value today of 11,795, compared with the 11,968 which a similar bond would have been worth last year.

Margaret Flaherty, Standard Life's with-profits communications manager, said: "While returns from equity markets have improved, they are still some way off recovering from the preceding downturn. Other classes of investment such as fixed interest and property delivered lower returns in 2009 than equities.

"Despite this, many with-profits investments have outperformed regular savings in a building society, with a 25-year savings endowment providing a return of 28,139 compared with 20,799."

By contrast, the picture improved at Friends Provident, where many investors will enjoy rising maturity values. The same endowment will pay out 29,996 compared with 25,526 last year; a 20-year pension 77,314, compared with 66,903 a year ago; and a five-year bond 12,541 compared with 11,140 in 2009.

Andy Carr, Friends Provident chief actuary, said: "Investment markets continued to be volatile in 2009, as they were for much of 2008, but staged a recovery in the second half of the year. Thanks to this, payouts for the majority of our policyholders have increased compared to last year. The recovery in the second half of 2009 has also meant market value reductions (exit penalties], reintroduced in October 2008, have now been removed on virtually all products."

YBS votes for merger

YORKSHIRE Building Society members have agreed to a proposed merger with Chelsea, with 85 per cent of those voting in favour of the move. The amalgamated society will have 2.7 million members, assets of 35 billion and a national network of 178 branches. The merger will be completed on 1 April, subject to Financial Services Authority confirmation.

Credit companion

WEBSITE Moneysupermarket.com has launched a new channel allowing users to compare credit reference and ID theft monitoring products. The site lists free trials, cancellation terms and pricing information for each provider.

The tool also offers tips on how to improve your credit rating.

Wanderful service

INSURANCE provider Wander warns student travellers to ensure they are covered for every eventuality. More than half a million British teenagers will go abroad without their parents in the coming year, yet one in five UK holidaymakers risks travelling without adequate insurance, leaving them vulnerable to big bills for medical treatment or flights home.

Wander offers policies designed for student travellers. Students can choose single trip or annual cover, family and backpacker insurance. Optional extras include winter and extreme sports cover.

Tracker rates reduced

SANTANDER has reduced the rate on its two-year tracker mortgages to 2.63 per cent with a 30 per cent deposit, or 2.89 per cent with a 25 per cent deposit. For existing current account customers with a smaller deposit the provider has introduced an 85 per cent loan-to-value mortgage fixed at 4.99 per cent for four years. All the deals charge a 995 fee.

Yorkshire has introduced a two-year fixed-rate mortgage at 3.29 per cent and a two-year tracker at base rate plus 1.99 per cent, currently 2.49 per cent. Both products charge a 1,195 fee and require a 40 per cent deposit. The society already offers a two-year fix at 3.59 per cent with a 495 fee.

Savings deal launch

COVENTRY has opened the fourth issue of its 1st Class Postal account, offering a return of 3.15 per cent. The account permits four penalty-free withdrawals a year.