Is it preferable to cash in Standard Life Bonds and buy the new discounted shares?

Answer 1

Yup. Keep the new 5%-discounted shares 12 months for a 5% more shares free dole-out to you, plus approx 4.5% dividend for the year (plus/minus the market change in that year - probably a big plus if the Abbey's flotation is anything to go by) adds up to a very attractive proposition indeed. Value could easily increase by 20% in the year, most building societies are paying less than
about 4.5% for instant access. Use your wife's money to buy if she isn't an income tax payer and you're even more quids-in.
I got all this info from my missus, she's read the mailing before me..

Answer 2

Best not to have anything to do with Standard Life - with their horrible computerised phone system that doesn't even recognise good English, the company is sure to go down the pan. Save your money by putting it in a company you can actually communicate with.