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Liverpool Vic with-profits bond is targeted at IFAs

Liverpool Victoria Friendly Society has set up a single-premium with-profits growth bond for the IFA market.

The minimum term is five years. Minimum investment of £10,000.

Liverpool Vic says an investor putting £10,000 into its previous with-profits bond has seen their savings grow to £17,561 since 1995.

There is no initial charge and no policy fee on the bond. Instead, there is a monthly policy charge of 0.075 per cent for first five years.

If the bond is fully encashed or if annual withdrawals exceed 5 per cent of the investment, a charge is levied on a reducing scale of 9 per cent in year one, dropping by 1.5 per cent a year until year six.

Allocation rates start at 102 per cent for £10,000, increasing by 0.5 per cent for £20,000 to 103 per cent for £50,000 and 103.25 per cent for £100,000.

Spokeswoman Kate Cone says: “With-profits bonds are an ideal investment for investors looking for potentially higher returns than those offered by societies and banks without taking the higher risk normally associated with direct stockmarket investment.”

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