I took out an FSAVC about 15 years ago. I ran it for a couple of years and then decided I had better things to do with my money, or rather Miss PN1 did as she took innumerable driving tests before taking my car to uni.
I stopped contributing but the small pot then doubled in size.
I have just converted. I noticed that fund rose quite hansomely last year to a point it had reached in Oct 07.
The reason I opted for a pension today is that advice in the papers pointed out that hanging on until I was 70 or 75 for a higher payout would have a break even point some 15 years hence when I was well in to my 80s.
The sum involved is miniscule but never the less is 10% of what I put in and 6% pa of the fund value. That of course will be taxed bringing the yield down to 4%. It is fairly adjacent to my share portfolio income so on balance it is 50-50.
Referring back to the reason I stopped contributing - you should not be seduced by the 40% tax relief and borrow to save.