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Liverpool Victoria Flexible "savings" plan.
tomstickland
Posts: 19,538 Forumite
I received some junk mail for LV today. The good news is that they wanted to give me £25. Which is nice.
However, they wanted me to start a "LV Flexible Savings Plan" in order to receive the voucher.
I thought I'd read the terms and conditions of this wonderful saving vehicle that they wanted to provide me with.....
From their "key features" document:
Year / Total Paid / Effect of Deductions to date / What you might get back
1 / £600 / £348 / £270
2 / £1200 / £382 / £893
3 / £1800 / £422 / £1540
4 / £2400 / £470 / £2230
5 / 3000 / £526 / £2960
10 / £6000 / £955 / £7200
So you end with 20% more than you paid in over ten years. This gives an annual gross rate somewhere around twice of * 20/10 which is 4%. Actually, they helpfully tell you that the effect of their charges is to reduce the annual growth rate from 6% to 3.6%.
Wonderful stuff indeed.
However, they wanted me to start a "LV Flexible Savings Plan" in order to receive the voucher.
I thought I'd read the terms and conditions of this wonderful saving vehicle that they wanted to provide me with.....
From their "key features" document:
Year / Total Paid / Effect of Deductions to date / What you might get back
1 / £600 / £348 / £270
2 / £1200 / £382 / £893
3 / £1800 / £422 / £1540
4 / £2400 / £470 / £2230
5 / 3000 / £526 / £2960
10 / £6000 / £955 / £7200
So you end with 20% more than you paid in over ten years. This gives an annual gross rate somewhere around twice of * 20/10 which is 4%. Actually, they helpfully tell you that the effect of their charges is to reduce the annual growth rate from 6% to 3.6%.
Wonderful stuff indeed.
Happy chappy
0
Comments
-
Why do you think they are direct mailshoting you with this?
These types of products are duff. No financial advisor would sell one. So, the only way to off load them is to post them direct and advertise them with no advice given.
Bit like the advert that boasts "no salesman will call". Thats because the product is bloody awful and no-one would recommend it !I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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