Investment bond charges

By THIS IS MONEY
Updated:

 

I have had an investment bond for 13 years with Scottish Provident, which, at the moment, charges an MVA on withdrawal. On the original blurb it says there are no charges for withdrawals at the ten-year anniversary nor at five-year intervals after. Will this include the MVA charge? BP, Harrogate

Bashar Aboush at independent financial advisers Chartwell, says: Due to the age of your bond, you will not suffer an early encashment penalty.

But because of the falls suffered in the equity markets recently, many with-profit bond providers are imposing a Market Value Adjustment (now called a Market Value Reduction, MVR) as the adjustments made are always downwards.

Scottish Widows should only charge you the MVR.

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