Would this be a wise move ?

atticgirl2003

I have held a Platinum Bond Plus with CIS for just over 10 years.

CIS agent is keen for me to move the money into, Guaranteed Fund.
Arranged by Co-operative Insurance, provided by Norwich Union.
Needs to be held for 5 years, not a problem.

Agent told me they could slap a MVR on the platinum bonds I am holding at present.
I did not think they could do this as I have held them over 10 years.
He said the rules were changed. Would this be right ?

Any advice would be appreciated.
Maybe I should just ask him for my cheque and invest somewhere else.
But where, this is the big question.

Would be happy to hear any coments on the above Guaranteed Fund

atticgirl2003

Sorry, just giving my post a nudge.

gozomark

what are the terms of the guaranteed fund ?

atticgirl2003

gozomark wrote: »

what are the terms of the guaranteed fund ?

They take 2% each year to manage your money.
At end of 5 years, guaranteed at least your money back.
However I have a feeling the 2% charges for each year will come off the amount.
That is one question I will ask agent, he is coming back to see me tomorrow.

Robert_Sterling_3

Well at least they are guaranteed an income. :eek:

Entertainer

atticgirl2003 wrote: »

They take 2% each year to manage your money.
At end of 5 years, guaranteed at least your money back.
However I have a feeling the 2% charges for each year will come off the amount.
That is one question I will ask agent, he is coming back to see me tomorrow.

But what's the upside though?

Primrose

I'm not a fan of these guaranteed bonds having had my fingers burned in the past. Many of them are not transparent and depend on stock market performance. Whilst you might not lose money, i.e. you get back what you invested, you could find that you don't get a penny more whereas if you'd put your money in a straightforward savings account, at least you would have received some interest. Also many of them have the capacity to impose MVRs at any given time (written in such small print that you can barely read it) which could be just the time when you needed to get your money out. I would certainly write to your provider and ask for a copy of the terms and conditions which show their right to impose an MVR at any time, although these should have been provided to you at the time you took out the bonds. You don't say how much money is involved but have you used up this year's ISA allowance? Corporate Bonds could be an option if you're prepared to hold for 5 years, and with this tax year's and next equity ISA allowance you could use up £7200 of your investment. If you can get your bonds out without an MVR at the moment, I'd be tempted to do so and hold your money penalty free while you look for other options.

Robert_Sterling_3

Primrose wrote: »

(written in such small print that you can barely read it)

Small print should not be allowed.
Small print is not allowed for the APR but it is allowed for almost everything else.

atticgirl2003

Thank you for replies.
Just been reading my statements.
Very clearly states no MVR when held for 10 years, which mine are.
Looks like the agent has got it wrong.

Keybiz

You are absolutely correct, NO MVR can be applied after 10 years on the CIS Bond.

The guaranteed fund does not suffer MVR's as it is not a with-profits product. It invests in a wide variety of Corporate bonds, and equities.

drwho_2

I know this post is over a year old now, but i am a little confused with the no MVR 10 year rule.

Like the original poster, i have had a CIS platinum bond plus since september 2000.

As there is a MVR applied at present i was considering waiting untill september this year before taking some money out. But the CIS website states thus.....

"When do MVRs not apply?
Importantly, MVRs only apply if you cash-in your investment.
The Co-operative Investments do not apply MVRs:

• From the 10th anniversary of Platinum Bond Plus investments made before 1st April 2000
• On Platinum Bond Plus regular income payments
• If you don’t cash-in
• To payments on death."

It seems that the 10 year rule only applies if the investment was made before 1st april 2000 ?