Market Value adjuster

lewisshan

I have got a flexible bond with AXA and need to draw some money from it. I have had this bond for 6 years now and they now tell me that I have to pay a MVR of 10% on my drawings. What I wish to know is should I draw all the capital out and put it in a savings account or just draw the ammount I need and let the rest sit there and hope the adjuster disapears in the future?

dunstonh

What I wish to know is should I draw all the capital out and put it in a savings account

You would suffer a 10% loss. Plus the AXA annual bonus is in line with a basic savings account at the moment. So drawing the lot will see you lose 10% to put it into a savings account that isnt paying much more than you are already getting. That would probably take about 10-20 years to recover.

Probably better to wait until the MVR is removed.

lewisshan

Thanks dunstonh I thought this might be the case, am I still covered for £50000 if AXA goes down? as is the case with banks

dunstonh

am I still covered for £50000 if AXA goes down?

No. Life assurance investments are covered under the life and pensions part of the FSCS. This is 100% of the first £2000 and 90% of the rest with no upper limit.