How to Ditch your Crap With-Profit Bonds without Penalty

Geoffo_M

Just received my letter informing me of the dates when I must apply to get out and claim my "No MVA guarantee". I'm confused a bit by the "carry forward" option, whereby they will allow you to carry forward the guarantee til the day you decide to cash in. That means if my MVA is, say 10% now, and it has risen to 15% when I eventually cash in, I will only be charged an MVA of 5%.

I don't know my MVA and will ring up on the 30th July, but, being a cynic, does this mean they might deliberately reduce the MVA in the anniversary year, and then increase it back again once the anniversary has passed so they can claim a larger MVA when you evenyually bail out?

Old_Slaphead

2010 wrote: »

Thanks for that OSHead

How long from the 10th anniversary until you got the dough?

Also is this the correct address to let them know you want out on the anniversary.

Aviva
PO Box 520
Norwich
NR1 3WG

Yep that's correct address.

I applied 1 month before specifying that policy be encashed on 10th anniverary and subject to the no MVA condition as detailed in T&Cs

Took 3 days to reach my account ie money returned 10 yrs 3 days after deposit

Old_Slaphead

Geoffo_M wrote: »

Just received my letter informing me of the dates when I must apply to get out and claim my "No MVA guarantee". I'm confused a bit by the "carry forward" option, whereby they will allow you to carry forward the guarantee til the day you decide to cash in. That means if my MVA is, say 10% now, and it has risen to 15% when I eventually cash in, I will only be charged an MVA of 5%.

I don't know my MVA and will ring up on the 30th July, but, being a cynic, does this mean they might deliberately reduce the MVA in the anniversary year, and then increase it back again once the anniversary has passed so they can claim a larger MVA when you evenyually bail out?

The value of the MVA imposed on 10th anniversary as a sum of money (not percentage) will be carried forward and offset against any future MVA.
Note MVAs have been reduced recently so the carry forward figure will be lower.
I share your suspicion that MVAs may have been lowered to reduce the value of the guarantee (after all it doesn't 'cost' them anything)

2010

I sent off a letter requesting surrender of my policy with no MVA on the 8th July, the first chance I had inside the 3 month "window"

I received back two days later my forecast and also the proof I have to send regarding money laundering regs.

Basically I have to get a photo copy of my passport "certified" by the likes of a bank manager, who has to sign it and confirm it`s a true likeness of me.
He also has to witness my signing the request form,etc.
The whole lot including policy documents to be sent off within 28 days or they`ll assume I no longer want to cash it in.(some hope)
Needless to say when I phoned the Halifax they were next to useless for doing a simple thing like that, saying they`d never heard of witnessing anything like this before.
Will be visiting the branch later today to kick butt

Also as expected NO final bonus from these money-grubbers.

Anyone who`s thinking about taking out any financial products should steer well clear of these people and put your money somewhere else.

As I have said in the past, I would have been just as well off sticking my lump sum in a 5 year fixed rate savings account and then another one for 5 more years.
At least that way there would be no sticky fingers taking their cut of my dough every year.
A lesson hard learned.

missile

I have just surrendered my Aviva with profits bond.

My annual statement showed I had a substantial MVR and zero final bonus in January.
In July I noticed that the MVR was zero and there was a final bonus.

You might want to check the status of your own bond. With Aviva, it is very easy to do online.

I would like to add: The process was quick and painless using a free phone number and the staff @ Aviva were very helpful.

dunstonh

Needless to say when I phoned the Halifax they were next to useless for doing a simple thing like that, saying they`d never heard of witnessing anything like this before.

Halifax are prone to saying things like that. Another classic lie from them is when they issue counter cheques that dont have the account name on them so cannot be used for purchasing of investments or savings at other banks/product providers. So, you then have to go back to them to request your name is added to the cheque and they say they have never heard of that being needed before.

The money laundering rules were changed at least a year back to include maturities and surrenders. On older plans, Aviva more or less use the same method for maturities as the rules expect on new business as the information they would have had back at the start is unlikely to be valid now. That assumes they even had any information as the requirement to send the provider the evidence ceased some years back). Aviva are pretty extreme compared to some others but technically, they are following the requirements to the letter and its only on cases of low information where they may need a bit more.

Anyone who`s thinking about taking out any financial products should steer well clear of these people and put your money somewhere else.

Your product is no longer available. Why tell people to avoid their current product offerings when yours is different? I'm not saying the current product is the best (its not at the moment but was best price for a while for its product type a few years back) but the reasoning for telling others not to use them is flawed.

As I have said in the past, I would have been just as well off sticking my lump sum in a 5 year fixed rate savings account and then another one for 5 more years.

Which is purely down to timing. I just checked one taken out in Feb 05. £100k invested. 5% wtihdrawn per annum. Current value £107583. Small final bonus but nearly cancelled out by MVR (£150 difference). So, that would have required a savings account that was paying at least 6.25% p.a. just to break-even let alone add another £7k to the balance. There have been no such savings rates.

Your issue appears to be that you shouldnt have invested full stop as you cant handle the uncertainty and fluctuations that can and will occur.

2010

Just back from local Halifax branch where a very helpful young lady sorted the ID out in a jiffy, signing,stamping the photocopy of my passport.

I phoned Aviva and they confirmed there is no MVR during the 3 month window which in my case is from 8th July and as soon as they receive the ID and original documents the policy will be cashed in and needn`t run to the exact anniversary.

They confirmed that there is no MVR on the three special bonuses that were paid.

Also confirmed that there is no final bonus.

Never again will I tie my hard earned up to any financial product for every tom,!!!!!! and harry to rake off their "commissions" and charges without any explanation given apart from the old excuse of "stock market turmoil" when the product performs poorly.

Ifts

2010 wrote: »

spam & crap

Try not to quote these parasites, because when their posts eventually get removed by admin the link to the spamming site is still shown in your post.

Edit: Thanks for deleting your post.

Geoffo_M

missile wrote: »

You might want to check the status of your own bond. With Aviva, it is very easy to do online.

How exactly? Do you have a link please?

jem16

Geoffo_M wrote: »

How exactly? Do you have a link please?

https://www.avivacustomer.co.uk/existing/site/public/login