Is this correct?

Ren1974

Hi, I took out what I believed to be a five year ISA which is due to mature in August. I emailed them to find out the withdrawal procedure and this is the reply I received:

Unfortunately, at the moment, due to the volatility and continuing uncertainty in the financial markets caused by COVID-19, we are currently applying a Market Value Reduction of 10% to all withdrawals from our ISA until further notice. This 10% reduction will only apply to monies you withdraw, and the reason that we do this is to protect the interests of all our members who have money invested with us.  This is the current MVR that we are applying and this could change.

 Can they keep 10% of my savings.

TIA

eskbanker

What's the name of the provider and the product itself?

grumiofoundation

I’m guessing this may be stocks and shares ISA with a friendly society?

 Such as Shepherds (recent post on thread below indicates 10% MVR). 
https://forums.moneysavingexpert.com/discussion/6126934/shepherds-friendly-mvr-warning

dunstonh

 Can they keep 10% of my savings.

They are not keeping 10% of your savings.
1 - it is not savings. It is a risk based investment
2 - The value of investments goes down as well as up.   
3 - MVRs are not charged at maturity (and some other events).
4 - If you decide to access money earlier than you said you planned and the underlying value of the fund is worth less than statement value then an MVR can be charged.
Bottom line.  Yes they can and are correct for doing so.

Albermarle

OP - Presuming it is Shepherds Friendly, these Friendly society products are generally very poor investments ,even though they are sold as family friendly and with some kind of gift for joining . Too late to do anything now but next time avoid.